Manton Manufacturing Applies Manufacturing Overhead Costs to Products at a Budgeted

question 77

Multiple Choice

Manton Manufacturing applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Bear product. Estimates for this order include: Direct materials of $79,000; 680 direct manufacturing labor-hours at $25 per hour; and a 25% markup rate on total manufacturing costs. Manufacturing overhead cost estimates for this special-order total ________.

• A) $60,550
• B) $57,800
• C) $40,800
• D) $59,250

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Definitions:

Effluent Dumping

The discharge of pollutants or waste materials into the environment, particularly into water bodies, without adequate treatment.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible level of profit through its operations and decisions.

Emissions

The act of releasing substances, such as greenhouse gases, pollutants, or radiation, into the environment, typically the air.

MSB Curve

A graph showing the marginal social benefit of producing one more unit of a good or service, considering both private and external benefits.