Asadi Company Uses a Job Costing System and Allocates Overhead

question 101

Multiple Choice

Asadi Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 20x5 is as follows: Estimated Actual
Manufacturing overhead $166,500 $165,000
Direct labour hours 50,000 60,000
The estimated overhead allocation rate for 20x5 was:

• A)$2.75
• B)$3.30
• C)$3.33
• D)$2.76

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Definitions:

Translation Statement

A financial document that converts the monetary values in financial statements from one currency to another.

Issued Capital

The total value of a company’s shares that have been sold to shareholders and are currently outstanding.

Translation Gain

Translation gain arises when the exchange rate changes favorably while converting foreign currency transactions or financial statements into the reporting currency.