The Cost of Production Summary for Maha Industries Follows

question 14

Multiple Choice

The cost of production summary for Maha Industries follows: What is the journal entry to record factory overhead applied to production?

• A)Work in process 3,000 Factory overhead 3,000 ​
• B)Factory overhead 3,000 Various accounts 3,000 ​
• C)Work-in-process 375 Factory overhead 375 ​
• D)Factory overhead 375 Work in process 375

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Definitions:

Returns to Scale

The rate at which production output increases as a result of a proportional increase in all inputs.

Isoquants

Curves that represent combinations of different inputs that yield the same output, used in production theory to analyze input choices.

Inputs

The resources used in the production process to produce goods or services, including labor, materials, and capital.

Production Function

An equation that describes the relationship between inputs (like labor and capital) and the quantity of output produced.