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

question 252

Multiple Choice

Lueckenhoff 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 $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed:

-The predetermined overhead rate is closest to:

• A) $11.90 per direct labor-hour
• B) $7.10 per direct labor-hour
• C) $9.50 per direct labor-hour
• D) $2.40 per direct labor-hour

Understand the concept of marginal cost in different contexts.

Differentiate between economic concepts and misconceptions.

Recognize the core concepts of economics: opportunity cost, marginalism, and efficient markets.

Learn about the historical significance of the Industrial Revolution.

---

Definitions:

Long Run

In economics, a period during which all factors of production and costs are variable, allowing for full industry adjustment to change.

Lowest Price

The minimum price at which a product or service is offered in the market.

Short Run

A period in economic theory during which at least one input is fixed while others are variable.

Short Run

A period in economics during which the quantities of some inputs, typically capital, cannot be changed, affecting how firms adjust production levels.