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

question 97

Multiple Choice

Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M598 was completed with the following characteristics:
The total job cost for Job M598 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $12,270
• B) $9,645
• C) $3,915
• D) $12,915

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Definitions:

Sold

The completion of a transaction where goods or services are exchanged for payment.

Variable Cost

Variable costs change in proportion to the level of business activity or production volume, such as raw materials and packaging.

Activity Level

Refers to the volume of production or operations within a specific period, influencing costs and operational capacity.

Units

The individual items or products counted for inventory, production, or sales purposes.