Job 593 Was Recently Completed

question 30

Multiple Choice

Job 593 was recently completed. The following data have been recorded on its job cost sheet: The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

• A)$6,705
• B)$3,219
• C)$5,249
• D)$4,255

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Definitions:

Producing

The act of creating, manufacturing, or generating products or services.

Capacity Level

The maximum output a business can produce in a given period with existing resources, often impacting production costs and pricing strategies.

Actual Production

The total quantity of goods and services produced over a specific period by a business.

Variable Overhead Costs

Expenses related to production that vary with the level of output, such as utilities for a manufacturing plant, which increase with more production.