Beans Corporation Uses a Job-Order Costing System with a Single

question 7

Multiple Choice

Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: The total job cost for Job K818 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $1,675
• B) $2,595
• C) $1,195
• D) $2,320

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Definitions:

Reciprocity

The social norm that suggests people should return help, not harm, to those who have behaved kindly towards them.

Foot-In-The-Door Technique

A persuasion strategy that involves getting someone to agree to a small request in order to increase the likelihood of agreeing to a larger request later.

Door-In-The-Face Technique

A persuasion strategy where a large, unreasonable request is first made knowing it will be refused so that a smaller, more moderate request will be accepted.

Sleeper Effect Method

A phenomenon where a message that was initially discounted gains in persuasiveness over time, often due to the dissociation of the message from its source.