Meger Manufacturing Uses the Direct Labor Cost Method for Applying

question 50

Multiple Choice

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000,respectively. ​
During the year,the company started and completed Job 352A,which had direct material and labor costs of $32,000 and $45,000,respectively.What was the cost of Job 352A?

• A)$ 77,000
• B)$ 81,000
• C)$102,600
• D)$113,000

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Definitions:

Parent-Company Extension Method

A method in accounting where the parent company extends its financial statements to include the financial activities of its subsidiaries as if they are part of the parent company itself.

Consolidated Shareholders' Equity

The total amount of equity attributed to shareholders of the parent company and its subsidiaries, after eliminating intra-group transactions and balances.

Non-controlling Interest

Non-controlling interest is a portion of the equity in a subsidiary not owned directly or indirectly by the parent company, representing minority shareholders' interest in the subsidiary's net assets.

Equity Method

A method of accounting in which an investor recognizes its share of the profits and losses of an investee company in proportion to its ownership interest.