Beta Corporation Uses a Job Cost System and Has Two

question 67

Multiple Choice

Beta Corporation uses a job 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 were as follows:

Beta applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.
Proportion of manufacturing overhead with respect to the total cost of the job is ________.

• A) 39.74%
• B) 32.05%
• C) 28.21%
• D) 42.68%

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Definitions:

Skimming Pricing

A pricing strategy where a firm sets relatively high prices at the launch of a new product or service to maximize profits from customers willing to pay more.

Fixed-price Policy

A pricing strategy where the price of a product or service is set and not subject to change based on market fluctuations.

Customary Pricing

Pricing strategy that is based on what is traditionally expected or accepted within a specific industry or by consumers.

Dynamic Pricing Policy

A pricing strategy where prices are variable and can change in response to market demand or other external factors.