Preston Manufacturing Is Working on Two Housing Projects

question 119

Multiple Choice

Preston Manufacturing is working on two housing projects. Overhead is applied on the basis of direct labor hours. At the beginning of the year, the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.(b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours) ; Project II, $44,000 (6,000 hours) .(c) Project II was sold during the period for $120,000.The amount of estimated overhead applied to Work in Process Inventory for the period equals: (Do not round your intermediate calculation.)

• A)$51,200.
• B)$64,000.
• C)$54,400.
• D)$44,000.

---

Definitions:

Interactively

In a manner that involves continuous two-way transfer of information between a person and a computer, device, or another person.

Difficult Clients

Refers to individuals in a professional setting who pose challenges for service providers, often requiring special strategies for effective interaction.

Mistakes

Errors or wrong decisions made as a result of poor judgment, lack of information, or oversight.

Countertransference

The therapist's emotional entanglement with the patient's issues, often reflecting the therapist's own unresolved problems.