Lansing Productions Estimated It Would Use $360 of Materials and Take

question 84

Multiple Choice

Lansing Productions estimated it would use $360 of materials and take 20 hours at $14.50 per hour to complete job 456.It calculated a predetermined overhead rate of $9.00 per direct labor hour.Job 456 required $380 of material and took employees a total of 19.25 hours at a cost of $15.20 per hour to complete the job.Actual manufacturing overhead costs totaled $223,000 for the year for the company.How much is the cost of Job 456?

• A)$173.25
• B)$553.25
• C)$845.85
• D)$823.25

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Definitions:

Strict Liability

Legal responsibility for damages, or for performing a specific act, that is imposed without the need to prove fault or negligence.

Defective Condition

A state in which a product possesses an inherent flaw or deficiency that makes it dangerous or unfit for its intended use.

Strict Product Liability

A legal doctrine that holds sellers, manufacturers, or distributors liable for damages caused by defects in their products, regardless of fault or negligence.

Heat-Resistant Tiles

Materials designed to protect surfaces or structures from damage by high temperatures, often used in aerospace applications.