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

question 2

Multiple Choice

Thach 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 $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours.Recently, Job T321 was completed with the following characteristics: The unit product cost for Job T321 is closest to:

• A)$117.00
• B)$58.50
• C)$154.50
• D)$51.50

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.

Complements

Goods that are often used together where an increase in the demand for one leads to an increase in the demand for the other.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to buy at a given price within a certain period of time.

Price Decrease

A reduction in the cost of goods or services, which can affect demand, supply, and economic equilibrium.