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

question 39

Multiple Choice

Session 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 the following data: Recently, Job K913 was completed with the following characteristics: The total job cost for Job K913 is closest to:

• A)$6,060
• B)$2,115
• C)$6,765
• D)$5,355

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Definitions:

Total Variable Cost

The sum of all costs that vary directly with the level of production, including materials, labor, and other expenses that increase with greater output.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like leases, wages, and insurance coverage.

Goal Conflict

A condition that occurs when individual objectives conflict with organizational objectives.

Budget Goals

Specific objectives set during the budgeting process that an organization aims to achieve, often related to cost control, revenue generation, or financial stability.