The Omega Company Manufactures Customized Motors on a Job-Order Basis

question 79

Multiple Choice

The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: $$\begin{array} { l c } \text { direct materials } & \$ 3,000 \\\text { direct labor } ( \$ 10 / h r ) & 1,000 \\\text { overhead } ( 150 \% \text { DL } \$ ) & 1,500\end{array}$$
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered abnormal spoilage, what is the cost of job 492?

• A)$5,500
• B)$5,760
• C)$3,140
• D)$5,640

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Definitions:

Learner

An individual engaged in acquiring knowledge, behaviors, skills, values, or preferences, often in an educational context.

Social Loafing

The phenomenon where individuals expend less effort when working in a group than when working alone.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Door-in-the-face Technique

A persuasion strategy whereby a large, unreasonable request is made first with the expectation it will be refused, followed by a smaller, more reasonable request.