Doyle CoUses a Job Order Cost Accounting System

question 15

Multiple Choice

Doyle Co.uses a job order cost accounting system.At year-end the Work-in-Process Inventory controlling account showed a debit balance of $43,125.For the two jobs in process at year-end,one showed $6,000 in direct materials and $4,500 in direct labor.The job cost sheet for the second job showed $9,000 in direct materials and $6,750 in direct labor.If the company is using a predetermined overhead application rate based on direct labor cost,the rate is:

• A)50%.
• B)100%.
• C)150%.
• D)200%.

---

Definitions:

Level of Significance

The criterion used in statistical testing to decide whether to reject the null hypothesis, represented by a probability value (e.g., 0.05 or 5%).

Standard Error

A measure of the variability of a statistic from sample to sample, often used to quantify the accuracy of a sample mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, representing how spread out the values are from the mean.

Sample Means

The average values calculated from samples drawn from a population; used in inferential statistics as estimates of the population mean.