Exhibit 18-4 Playtime Toys Began Operations on January 1, 2011

question 75

Multiple Choice

Exhibit 18-4 Playtime Toys began operations on January 1, 2011. During January it produced 2,000 toys and sold 1,850 toys. The following are needed to make 1 toy:
Manufacturing overhead is applied at a rate of $4 per direct labor hour.
-Refer to Exhibit 18-4. Given the information above, the manufacturing overhead cost per toy would be:

• A) $6
• B) $9
• C) $12
• D) $30

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Definitions:

Channel Sales Representatives

New-business sales representatives who focus on securing new distribution channel outlets.

Order-Takers

Individuals or employees within a company responsible for taking orders from customers but not actively involved in sales solicitation.

Advantages

In the FAB sales approach, general statements about what the features do; they may or may not be connected to an expressed or actual customer need.

Expressed Need

A requirement or desire that has been clearly stated or communicated by individuals or groups.