Asadi Company Uses a Job Costing System and Allocates Overhead

question 108

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 overhead allocated to work in process during 20x5 before the year-end adjustment was:

• A)$199,800
• B)$165,000
• C)$166,500
• D)$198,000

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Definitions:

Brachial Plexus

A network of nerve fibers, running from the spine, formed by the ventral rami of the lower four cervical nerves and the first thoracic nerve that supplies the arm and hand.

Median Nerve

A major nerve in the human body extending down the arm, through the carpal tunnel in the wrist, to the hand, responsible for sensation and movement.

Parasympathetic Division

A branch of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.