Use the Following Information for Hayes, Inc -What Is the Correct Amount of Overhead Based on the 31

question 75

Multiple Choice

Use the following information for Hayes, Inc., as of December 31 to answer the next questions:
$\begin{array}{lr}\text { Administrative salaries } & \$ 32,000 \\\text { Depreciation of factory equipment } & 25,000 \\\text { Depreciation of delivery vehicles } & 8,000 \\\text { Direct labor } & 68,000 \\\text { Factory supplies used } & 12,000 \\\text { Finished goods inventory, January 1 } & 57,000 \\\text { Finished goods inventory, December 31 } & 68,000 \\\text { Factory insurance } & 15,500\\\text { Interest expense } & 12,000 \\\text { Factory utilities } & 14,000 \\\text { Factory maintenance } & 7,500 \\\text { Raw materials inventory, January 1 } & 8,000 \\\text { Raw materials inventory, December 31 } & 4,000 \\\text { Raw material purchases } & 125,000 \\\text { Rent on factory building } & 25,000 \\\text { Repairs of factory equipment } & 11,500 \\\text { Sales commissions } & 37,500 \\\text { Goods in process inventory, January 1 } & 3,500 \\\text { Goods in process inventory, December 31 } & 2,000\end{array}$
-What is the correct amount of overhead based on the Hayes Inc. information?

• A) $192,000.
• B) $110,500.
• C) $200,000.
• D) $150,000.
• E) $77,500.

---

Definitions:

Cultural Differences

Cultural differences refer to the diverse customs, beliefs, practices, and social behaviors that vary from one culture or ethnic group to another.

Americanization

The process by which American culture and values are adopted by other countries or people, influencing their way of life, consumption habits, and social norms.

Purchase Behaviors

The actions and decision-making processes of consumers when they buy products or services.

Manufacturing Operations

Processes involved in the production of goods, including designing, machining, assembling, and finishing products.