The Assignment of Direct Labor Cost to Individual Jobs Is

question 35

Multiple Choice

The assignment of direct labor cost to individual jobs is based on:

• A)an estimate of the total time spent on the job.
• B)actual total payroll cost divided equally among all jobs in process.
• C)estimated total payroll cost divided equally among all jobs in process.
• D)the actual time spent on each job multiplied by the wage rate.
• E)the estimated time spent on each job multiplied by the wage ratE.

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Definitions:

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service.

Profit-Maximizing

A method or plan designed to maximize profits from business activities.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wage bills, and insurance fees.

Market Price

The existing rate at which an asset or service is offered for buying or selling.