Echo Corporation Uses a Job-Order Costing System and Applies Overhead

question 72

Multiple Choice

Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600. At the end of the year, manufacturing overhead was overapplied by $15,900. If the applied manufacturing overhead was $169,300, the actual manufacturing overhead cost for the year was:

• A)$168,800
• B)$153,400
• C)$190,000
• D)$185,200

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Definitions:

Regulatory Hurdles

challenges and obstacles that businesses face due to government regulations and requirements, which can affect their operation and profitability.

Production Technologies

The methods, equipment, and processes used to manufacture goods or provide services.

Close Substitutes

Products or services that can easily replace one another in the eyes of consumers, leading to competitive market dynamics.

Positive Profits

Positive profits occur when a business's total revenues exceed its total costs, indicating financial gain from its operations.