The Donaldson Company Uses a Job-Order Cost System Overhead Is Applied to Jobs at the Rate of 80

question 57

Multiple Choice

The Donaldson Company uses a job-order cost system. The following data were recorded for July: $\begin{array}{cccc}&&\text { Added During June }\\&\text {July 1}\\\\&\text { Work in Process}&\text { Direct}&\text { Direct }\\\text { Job Number } &\text { Stok} & \text { Materials } & \text { Labour } \\475 & £ 1,500 & £ 500 & £ 300 \\476 & £ 1,000 & £ 700 & £ 900 \\477 & £ 900 & £ 1,000 & £ 1,500 \\478 & £ 700 & £ 1,200 & £ 2,000\end{array}$
Overhead is applied to jobs at the rate of 80 percent of direct materials cost. Jobs 475, 477, and 478 were completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. Donaldson's Work in Process Stock balance on July 31 was:

• A)£7,280.
• B)£2,600.
• C)£3,160.
• D)£3,320.

---

Definitions:

Hedonic Treadmill

A psychological phenomenon that suggests people tend to return to a relatively stable level of happiness despite major positive or negative events or life changes.

Minor Physical Injuries

Bodily harm that is not severe or life-threatening, often including cuts, bruises, or minor burns.

Pre-Injury Level

A state of physical or mental ability or health before an individual suffered an injury, used as a baseline for recovery or treatment goals.

Remains The Same

To continue to be in an unchanged state or condition over a period of time.