Mesa CorpAllocates Overhead to Production on the Basis of Direct Labor

question 187

Multiple Choice

Mesa Corp.allocates overhead to production on the basis of direct labor costs.Mesa's total estimated overhead is $450,000 and estimated direct labor is $180,000.Determine the amount of overhead applied to a job which used $20,000 of direct labor.

• A)$8,000.
• B)$20,000.
• C)$70,000.
• D)$50,000.
• E)$90,000.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Disclosure Requirements

Regulations or standards mandating companies to reveal certain financial and non-financial information to maintain transparency and inform stakeholders.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for financial reporting globally.

Party Affiliation

The formal association or identification of an individual with a political party, often influencing voting behavior and political perspectives.