Assume the Following Data for Rodriguez Services, an Accounting Firm

question 55

Multiple Choice

Assume the following data for Rodriguez Services, an accounting firm, for November: $$\begin{array} { l r } \text { Beginning materials inventory } & \$ 20,000 \\\text { Beginning work-in-process inventory } & 40,000 \\\text { Ending work-in-process inventory } & 50,000 \\\text { Ending materials inventory } & 10,000 \\\text { Actual overhead costs } & 100,000 \\\text { Direct materials used } & 60,000 \\\text { Direct labor } & 200,000\end{array}$$
What is the cost of services sold for November?

• A)$370,000
• B)$350,000
• C)$360,000
• D)$330,000

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Definitions:

Master Budget

The total of all individual budgets within an organization, projecting all major financial activities over a period.

Flexible Budget

An adaptable budget configured to change with differing levels of activity or volume.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as sales volumes.