Kubes Corporation Uses a Job-Order Costing System with a Single

question 74

Multiple Choice

Kubes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed:

-If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to:

• A) $4,390.00
• B) $878.00
• C) $5,268.00
• D) $5,795.00

---

Definitions:

True Value

The actual, intrinsic value of an asset or entity, not influenced by external factors like market fluctuations or subjective perceptions.

Bid-Rigging

An illegal agreement among competitors to raise, lower, or maintain prices at agreed-upon levels, often in auctions.

Larger Amounts

Quantities or volumes greater than usual or compared to a standard measure, indicating a significant scale.

Auctioneer

An individual or company that conducts auctions by accepting bids and declaring goods sold to the highest bidders.