Figure 5-5

question 11

Multiple Choice

Figure 5-5. Brillant Design Company makes custom chairs for individual customers.On October 1,there was one job in process,Job 243,with a cost of $1,300.Jobs 244,245,and 246 were started during the month of October.Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 70% of direct labor cost.Job 245 was completed on October 14 and the client was billed at cost plus 55%.All other jobs remained in process.
Refer to Figure 5-5.If selling and administrative expense for the month of October equaled $ 2,000,what is operating income for the month of October?

• A)$14,399.50
• B)$3,109.50
• C)$5,109.50
• D)$2,000.00

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Definitions:

Percentage

A portion or share of a whole, expressed as a number out of 100.

Rate of Decrease

A measure that indicates how quickly a quantity diminishes over time.

Base Value

A reference point used in the calculation of variables, such as index numbers, from a specific base date.

Percentage

A fraction or ratio expressed as a part of 100, used to denote proportion or comparison between quantities.