Compound Q11H Is a Raw Material Used to Make Grater

question 1

Multiple Choice

Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below: The raw material was purchased on account.
-The credits to the Raw Materials account for October would total:

• A)$52,440
• B)$48,760
• C)$52,900
• D)$53,130

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Definitions:

Machine-Hours

The total hours that machinery is operated during the production process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a predetermined formula, prior to actual production.

Customizing Department

A division within a company that modifies products to meet specific requirements or preferences of customers.

Direct Labor-Hours

A measure of the time directly spent by workers on producing a product or delivering a service, often used to allocate manufacturing overhead.