During the Current Year,Kemp Construction Company Built 23 Custom Homes

question 24

Multiple Choice

During the current year,Kemp Construction Company built 23 custom homes that ranged in size from 2,500 square feet to 8,000 square feet.One home was completed each month during January,February,and March.Three homes were completed during April and May.Two homes were completed during each of the months from June through December.Based upon this information,the most appropriate allocation base (i.e.,cost driver) for the assignment of indirect overhead costs to each house would be the:

• A) Number of homes built during the month.
• B) Number of months in the year.
• C) Number of homes built during the year.
• D) Size of the home.

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Definitions:

NSF Check

A check that cannot be processed because the account on which it was drawn lacks sufficient funds, standing for Non-Sufficient Funds.

Outstanding Checks

Checks that have been written and recorded in the payer's ledger but have not yet been cashed or processed by the recipient's bank.

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The act of creating checks as payments for expenses, purchases, or obligations by a business or individual.