Dasilva Company Had Only One Job in Process on May

question 162

Multiple Choice

Dasilva Company had only one job in process on May 1. The job had been charged with $1,400 of direct materials, $6,192 of direct labor, and $5,712 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $11.90 per direct labor-hour. During May, the following activity was recorded: Work in process inventory on May 30 contains $4,773 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
-The cost of goods manufactured for May was:

• A) $98,920
• B) $92,688
• C) $120,800
• D) $97,310

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Definitions:

Control Limits

Statistically determined lines on a control chart outside of which a process is considered to be out of control or unnatural variations.

Assignable Variation

Changes within a process stemming from particular causes, instead of occurring randomly.

Pooled Standard Deviation

A statistical measure used to estimate the standard deviation of two or more samples by combining variances in a weighted average.

Assignable Cause Variation

Variability in a process that can be traced to a specific reason or cause, often indicating issues that need correction.