Reference: 07-15
Jimbob Co Variable Manufacturing Overhead Is Applied Using Direct Labour Hours at \begin{array}

question 90

Multiple Choice

Reference: 07-15
Jimbob Co. has budgeted direct labour-hours as follows: $$\begin{array} { | l | l | } \hline \text { Quarter } & \text { Hours } \\\hline 1 & 11,000 \\\hline 2 & 12,000 \\\hline 3 & 10,000 \\\hline 4 & \underline { 11,000 } \\\hline \text { Year } & \underline { \underline { 4 } , 000 } \\\hline\end{array}$$ Variable manufacturing overhead is applied using direct labour hours at a rate of $3.00 per DLH. Fixed manufacturing overhead is budgeted at $30,000 per quarter which includes $8,000 in depreciation expense.
-What is the total variable manufacturing overhead budgeted for the year

• A)$252,000.
• B)$220,000.
• C)$120,000.
• D)$132,000.

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Definitions:

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.

Price Elasticity of Demand

An index showing the extent to which demand for a product changes in reaction to a variation in its price, where an elasticity exceeding one signifies a strong response.

Determinants

Factors or elements that contribute to producing a particular result or outcome.

Rebate Program

A promotional offer that refunds part of the purchase price of a product to the customer, usually after submitting a claim form with a receipt.