Sheen Co Manufacturers Laser Printers

question 85

Multiple Choice

Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers:Using activity-based costing, applied quality control factory overhead for the 1,000 laser printers order is:

• A)$7,800.
• B)$10,000.
• C)$10,500.
• D)$150.
• E)$21,600.

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit.

Inventory Turnover

A ratio indicating how fast a company sells and replaces its stock of goods during a particular period.

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Inventory

The complete list of items such as property, goods in stock, or the contents of a building.