Venus Crates Manufactures Custom Crates for a Variety of Uses

question 162

Multiple Choice

Venus Crates manufactures custom crates for a variety of uses.The following data have been recorded for Job 551,which was recently completed.Direct materials used cost $7,200.There were 82 machine hours used on this job.The predetermined overhead rate is $30 per machine hour used.There were 175 direct labor hours worked on this job at a direct labor wage rate of $24 per hour.
What is the total manufacturing cost of Job 551?

• A)$13,860
• B)$4,200
• C)$2,460
• D)$7,457

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Definitions:

Quick Ratio

Quick ratio, also known as acid-test ratio, is a liquidity metric that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.