Figure 5-5

question 180

Multiple Choice

Figure 5-5.Brillant Design Company makes custom chairs for individual customers. On October 1, there was one job in process, Job 243, with a cost of $1,300. Jobs 244, 245, and 246 were started during the month of October. Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 70% of direct labor cost. Job 245 was completed on October 14 and the client was billed at cost plus 55%. All other jobs remained in process.
-Refer to Figure 5-5. If selling and administrative expense for the month of October equaled $ 2,000, what is operating income for the month of October?

• A) $14,399.50
• B) $3,109.50
• C) $5,109.50
• D) $2,000.00

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Definitions:

Work Evaluation

The process of assessing the performance of employees or tasks, typically to inform decisions about promotions, salaries, or training needs.

Water Catchment

An area of land where precipitation collects and drains off into a common outlet, such as a river, bay, or other body of water.

Wage Surveys

Studies conducted to gather and analyze data on the wages paid across different jobs, industries, and geographical areas.

Labour Market

Refers to the supply and demand for labor, where employers seek the best individuals for their vacancies and individuals look for their best job opportunities.