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Question
Assume that the Hood River Juice Company applies factory overhead to its production departments on the basis of 65% of direct labor costs. Direct labor in the Squeezing Department was $80,000 and direct labor in the Filtering Department was $12,000. The entry to apply overhead to these production departments is:
| A. | Factory Overhead Squeezing | 52,000 | |
| Factory Overhead Filtering | 7,800 | ||
| Work in Process | 59,800 | ||
| B. | Factory Overhead | 59,800 | |
| Work in Process Squeezing | 52,000 | ||
| Work in Process Filtering | 7,800 | ||
| C. | Factory Overhead | 59,800 | |
| Factory Payroll | 59,800 | ||
| D. | Work in Process Squeezing | 52,000 | |
| Work in Process Filtering | 7,800 | ||
| Factory Overhead | 59,800 | ||
| E. | Factory Payroll | 59,800 | |
| Cash | 59,800 | ||
Answer
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Related questions
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Q:
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A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
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Q:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
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E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.