Beans Corporation Uses a Job-Order Costing System with a Single

question 104

Multiple Choice

Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: If the company marks up its unit product costs by 40% then the selling price for a unit in Job K818 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $363.30
• B) $103.80
• C) $383.30
• D) $324.80

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Definitions:

Social Regulation

Laws and regulations aimed at improving health, safety, and well-being in society, often implemented to correct market failures affecting the public interest.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.

Marginal Cost

The increase in cost that arises from an additional unit of production.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 that prohibits certain business activities that reduce competition in the marketplace.