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

question 223

Multiple Choice

Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M598 was completed with the following characteristics:
The unit product cost for Job M598 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $65.25
• B) $160.75
• C) $215.25
• D) $43.05

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Definitions:

Gross Earnings

The total amount of income earned by a company before deductions such as taxes and expenses.

Pay Period

The interval at which an employee's salary is calculated and paid.

FICA Tax Rate

The combined percentage of Social Security and Medicare taxes that employers and employees are required to pay on wages under the Federal Insurance Contributions Act.

Employee Earnings

The total compensation received by an employee, including wages, salaries, bonuses, and commissions.