Multiple Choice
The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is:
A) 50% of direct labor cost.
B) 80% of direct labor cost.
C) 300% of direct labor cost.
D) 40% of direct labor cost.
E) 200% of direct labor cost.
Correct Answer:
Verified
Correct Answer:
Verified
Q137: If overhead is underapplied, it means that
Q138: Job cost sheets include both product and
Q139: The Work in Process Inventory account for
Q140: Describe the flow of the raw materials,
Q141: A _ accounting system records production activities
Q143: Using the following accounts and an overhead
Q144: Minstrel Manufacturing uses a job order costing
Q145: A company that uses a job order
Q146: Copy Center pays an average wage of
Q147: A company's file of job cost sheets