The Following Costs Relate to JB Contraction Company: Variable Manufacturing

question 12

Multiple Choice

The following costs relate to JB Contraction Company: Variable manufacturing cost, $20; variable selling and administrative cost, $11; applied fixed manufacturing overhead, $12; and allocated fixed selling and administrative cost, $3. If JB uses absorption manufacturing-cost pricing formulas, the company's markup percentage would be computed on the basis of:

• A)$15.
• B)$20.
• C)$31.
• D)$32.
• E)$46.

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Definitions:

Clients Paid

Transactions where clients or customers have settled their invoices or bills, transferring money to the service provider or seller.

Office Furniture

This term covers items such as desks, chairs, and filing cabinets used in an office setting to facilitate work and operations.

Electricity Bill

A monthly bill charged for the consumption of electric energy provided by a utility company to power residential, commercial, or industrial properties.

Purchase

The act of obtaining goods or services in exchange for money, other goods, or services.