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

question 177

Multiple Choice

Coates 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 $249,000, variable manufacturing overhead of $3.80 per machine-hour, and 30,000 machine-hours.The company has provided the following data concerning Job X784 which was recently completed: If the company marks up its unit product costs by 30% then the selling price for a unit in Job X784 is closest to:

• A)$253.87
• B)$233.87
• C)$53.97
• D)$155.22

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Definitions:

Indirect Method

A approach used in cash flow statements to adjust net income for the effects of non-cash transactions and changes in working capital.

Operating Activities

Operating activities involve the primary revenue-generating activities of an organization, including production, sales, and delivery of the company’s product as well as administrative and general expenses.

Salaries Expense

The cost incurred by a business to pay its employees for services rendered during a specific period.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, recorded as a liability.