Mannitou Company Made the Following Predictions for 2018 Job A2 (Which Was Started and Completed in June) Used

question 63

Multiple Choice

Mannitou Company made the following predictions for 2018: $\begin{array}{lr}\text { Factory overhead costs } & \$ 300,000 \\\text { Direct labor hours } & 50,000 \text { hours } \\\text { Machine hours } & 100,000 \text { hours }\end{array}$ Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
If factory overhead is applied based on machine hours, the cost of Job A2 for the Mannitou Company is

• A)$69,000.
• B)$75,000.
• C)$63,000.
• D)$66,000.

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Definitions:

Rate of Return

The net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Stock Price

The current market price at which a share of stock can be bought or sold.

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the risk associated with the cash flows.

Projected Dividends

The estimated dividends a company plans to pay out to its shareholders in the future.