Apple Valley Corporation Uses a Job Order Cost System and Has

question 33

Multiple Choice

Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
The actual material and labor costs charged to Job #432 are as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-Total manufacturing costs associated with Job #432 equal:

• A)$55,000.
• B)$65,000.
• C)$70,000.
• D)$75,000.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices during a specified period.

Binding Price Floor

A government or regulatory-imposed price control that sets the minimum price that can be charged for a good or service, above the equilibrium price, leading to potential surpluses.

Surplus

Surplus refers to the amount by which production, resources, or inventory exceeds what is needed or used, often resulting in excess supply.

Nonbinding Price Floor

A minimum price set by the government that is below the equilibrium price, having no effect on the market.