Job Z2 Requires $1,200 of Material,$100 of Which Is Indirect

question 28

Multiple Choice

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

• A) $3,600.
• B) $4,800.
• C) $7,200.
• D) $7,100.

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Definitions:

Elastic

A term often used in economics to describe a situation where the demand for a product or service significantly changes in response to a change in price.

Pricing Strategy

An approach businesses use to set the prices for their products or services, based on costs, market demand, competition, and other factors.

Marginal Revenue

The change in total revenue that results from selling one additional unit of product.

Robinson-Patman Act

A United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.