PLEASE HIGHLIGHT THE ANSWER

Smiley Co. showed the flowing information for March 2021

W.I.P inventory balances 3/1 $5,000 and 3/31 $1,000

Raw materials inventory balances 3/1 $8,000 and 3/31 $4,000

Raw materials purchased during March $72,000

Direct labor during March $80,000

Manufacturing Overhead Application Rate is 200% of direct labor

13) Smileys high (200%) overhead application rate indicates a process that

A) Uses many different machines with high depreciation, insurance and maintenance costs

B) Uses no machines at all

C) Has an overpaid factory manager

D) Has solid gold bolts and nuts

14) Smileys low ($1,000) W.I.P inventory balance at 3/31 indicates

A) They finished almost all of the units they worked on during March

B) They had many unfinished units at 3/31

C) They have no idea how to run their business

D) They use too many paper clips