Figure 4-4 Mannitou Company Made the Following Predictions for 2016: Job

question 154

Multiple Choice

Figure 4-4
Mannitou Company made the following predictions for 2016: Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
-The following information is provided for the year: If normal costing is used, the amount of overhead applied for the year is

• A) $568,750.00.
• B) $441,031.25.
• C) $481,250.00.
• D) $525,000.00.

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Definitions:

Non-controlling Interest

A shareholder's equity in a subsidiary that is not attributable to the parent company, representing minority ownership.

Consolidated Net Income

The total earnings of a corporation, after tax, including earnings from subsidiaries, before distributing dividends.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without adjustment for increases or decreases in market value.

Goodwill

An intangible asset arising when a company acquires another for more than the fair value of its net identifiable assets.