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

question 54

Multiple Choice

Echenko 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 $380,000 and credited for $335,500. The ending balance in the Finished Goods inventory account was $62,300. At the end of the year, manufacturing overhead was overapplied by $2,900.
-If the applied manufacturing overhead was $70,400,the actual manufacturing overhead cost for the year was:

• A)$73,300
• B)$67,500
• C)$129,800
• D)$85,300

Understand the concept and calculation of the slope in economic models.

Learn the significance of stability and its criteria in economic contexts.

Understand the life cycle stages of entrepreneurial organizations and related management challenges.

Identify the types of start-up costs and potential investors for entrepreneurial businesses.

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Definitions:

Unauthorized Checks

Checks that are issued and used without the account holder's knowledge or consent, typically an illegal activity.

Liability

The state of being legally responsible or obligated to settle a debt, fulfill a contractual duty, or compensate for harm or loss.

Authorizing

The act of giving legal or formal approval for something or someone to proceed or act in a certain way.

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or other legal mechanisms.