Lawrence Legal Services Recently Billed a Customer $690

question 114

Multiple Choice

Lawrence Legal Services recently billed a customer $690. Labor hours were 6 and the cost of the materials used was $150. If the company's hourly labor rate was $75, what material loading charge was used?

• A) 30%
• B) 50%
• C) 60%
• D) 100%

Compute the costs per equivalent unit for materials and conversion costs.

Appreciate the importance of cost accounting in pricing, cost control, and decision making within a manufacturing environment.

Understand the definition and application of the FIFO method in process costing.

Analyze how equivalent units of production are calculated under the FIFO method.

---

Definitions:

Primary Reinforcer

A naturally reinforcing stimulus, such as food or water, that satisfies a basic biological need.

Punishment

A consequence aimed at reducing a particular behavior, often used as a behavioral modification technique.

Antecedent

An event or condition that precedes and triggers a behavior or response, often studied in behaviorism to understand and modify behavior.

Aversive Control

A behavioral control technique involving the use of unpleasant stimuli to influence the occurrence of certain behaviors.