Question at position 3 Better Products Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $19 per direct labor-hour. The following data are obtained from the accounting records for October 2020:The actual amount of manufacturing overhead costs incurred in October 2020 totals: $118,000$157,000$114,000$262,400题目解析单项选择题
A
$118,000
B
$157,000
C
$114,000
D
$262,400

Question

Question at position 3 Better Products Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $19 per direct labor-hour. The following data are obtained from the accounting records for October 2020:The actual amount of manufacturing overhead costs incurred in October 2020 totals: $118,000$157,000$114,000$262,400题目解析单项选择题

A

$118,000

B

$157,000

C

$114,000

D

$262,400

BlackTom AI · Accepted Answer

To tackle this question, I’ll first identify what constitutes manufacturing overhead for Better Products Company. In a standard cost system, overhead includes indirect costs such as indirect labor, plant rent, and depreciation on plant assets, excluding direct materials and direct labor.
Option 1: $118,000. This would be plausible if it included indirect labor ($21,000), plant rent ($51,000), and depreciation ($42,000) plus an additional item or misclassification. However, adding the listed manufacturing overhead components yields 21,000 + 51,000 + 42,000 = 114,000, so $118,000 would overstate the overhead by 4,000 and is not supported by the data provided.
Option 2: $157,000. This amount would require including more items than those labeled as manufacturing overhead or inflating one of them. The explicit overhead-related lines shown are only three: indirect labor, plant rent, and depreciation on plant machinery and equipment. The sum of those is 114,000, not 157,000, so this option is inconsistent with the given data.
Option 3: $114,000. This matches the sum of the three overhead components listed: indirect labor ($21,000) + plant facility rent ($51,000) + depreciation on plant machinery and equipment ($42,000) = 114,000. This aligns exactly with the data presented for manufacturing overhead.
Option 4: $262,400. This is far larger and would imply including non-overhead costs such as direct materials or selling/administrative expenses in manufacturing overhead, which is not appropriate. The figure 262,400 is not supported by the overhead components specified and would misclassify costs.
In summary, the only figure that coherently aggregates the listed manufacturing overhead items is $114,000, since indirect labor, plant rent, and depreciation on plant machinery and equipment total 114,000. The other options either overstate, misclassify, or rely on items not included in overhead.

类似问题

Which of the following is considered an element of manufacturing overhead?

Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?

Which of the following is not included in factory overhead?

What is manufacturing overhead cost?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单