Metalworks Applies Manufacturing Overhead on the Basis of Direct Materials

question 16

True/False

Metalworks applies manufacturing overhead on the basis of direct materials used in production.During the current period,direct materials used for job #123 amounted to $22,545.If Metalworks' overhead rate is 0.65 of direct materials used,the overhead applied to job #123 for the period was $15,000.
Correct answer would have been $22,545 × 0.65 = $14,654.25

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Definitions:

Resource Allocation

The process of distributing resources among various projects, processes, departments, or components of a system to maximize efficiency and achieve desired outcomes.

Honest Signals

Characteristics or actions that reliably convey information about an individual’s genetic quality or fitness to others.

Beneficial Mutations

Genetic alterations that provide an advantage to an organism in its environment, leading to increased survival or reproductive success.

Sexual Reproduction

A biological process where organisms create offspring by combining the genetic material of two different cells (gametes).