Armada Company Applies Manufacturing Overhead by Using a Predetermined Rate $\begin{array}{lr}\text { Direct material cost } & \$ 72,000 \\\text { Direct labor cost } & 38,000\end{array}$

question 45

Multiple Choice

Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. The data that follow pertain to job no. 831: $\begin{array}{lr}\text { Direct material cost } & \$ 72,000 \\\text { Direct labor cost } & 38,000\end{array}$ If Armada adds a 30% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. 831?

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

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Definitions:

Long-Term Investment

Investments held for an extended period, usually more than one year, with the intention of gaining significant returns over time.

Dividends Received

Income earned from investments in the form of payments distributed by a corporation to its shareholders.

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.