Gulick Company Developed the Following Data for the Current Year

question 66

Multiple Choice

Gulick Company developed the following data for the current year: $\begin{array}{lr}\text { Beginning work in process inventory } & \$ 240,000 \\\text { Direct materials used } & 144,000 \\\text { Actual overhead } & 288,000 \\\text { Overhead applied } & 216,000 \\\text { Cost of goods manufactured } & 264,000 \\\text { Total manufacturing costs } & 720,000\end{array}$ Gulick Company's direct labor cost for the year is

• A)$72000.
• B)$360000.
• C)$216000.
• D)$288000.

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Definitions:

Budget Constraint

A budget constraint represents the limits on the consumption bundles that a consumer can afford, given the consumer's income and the prices of goods.

Opportunity Set

All possible combinations of consumption and leisure that a person can achieve given their resources and prices.

Income

The money received, typically on a regular basis, for work or through investments.

Budget Constraint

Represents the combinations of goods and services that a consumer can afford to buy with their limited income.