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

question 108

Multiple Choice

Levron Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed:

-If the company marks up its unit product costs by 30% then the selling price for a unit in Job P978 is closest to:

• A) $249.58
• B) $229.58
• C) $204.10
• D) $52.98

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Definitions:

Interstate Commerce Commission

The Interstate Commerce Commission (ICC) was a regulatory agency in the United States responsible for enforcing federal regulations governing railroad rates and operations. It has since been dissolved and replaced by other bodies.

Anti-Competitive Nature

Behaviors or actions by companies that unfairly restrict competition and control markets.

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

Anticompetitive Conduct

Actions by businesses that harm competition, including monopolization, illegal mergers, and unfair trade practices.