A Company Has Identified the Following Overhead Costs and Cost

question 3

Multiple Choice

A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted) Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000.The following information was collected on three jobs that were completed during the year: If the company uses activity-based costing (ABC) ,how much overhead cost should be assigned to Job 101?

• A)$1,300.
• B)$2,000.
• C)$5,000.
• D)$5,600.

---

Definitions:

Written Promises

Documents or agreements in which one party commits to perform a specified action for another party.

Dependent Variables

In experimental and statistical research, the variable that is tested and measured to see if it is influenced by changes in the independent variable.

Independent Variables

Variables in an experiment that are manipulated to observe their effects on dependent variables.

Experimental Hypothesis

An assumption or prediction about the relationship between two variables or the outcome of an experiment designed to be tested through research.