The Manager at the Atlantic Organization Reported $225,000 in Administration

question 79

Multiple Choice

The manager at the Atlantic Organization reported $225,000 in Administration Activity.The manager reported that the cost-allocation base was 32,000 in direct manufacturing-labor hours.
Required:
Compute the direct manufacturing labor-hours.

• A)$7.00
• B)$7.03
• C)$7.10
• D)$7.15
• E)$7.25

Determine the relevance of costs in making short-term decision-making.

Assess the financial implications of discontinuing a product.

Identify sunk costs and their relevance in decision-making.

Evaluate the profitability of processing products further versus selling them as intermediate products.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder that outlines the terms and conditions under which the insurer agrees to compensate the policyholder for losses under specified circumstances.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to the shareholders, often reinvested in the business or used to pay off debt.

Cost of Goods Sold

The specific costs incurred from the production of goods a business sells, including labor and materials.

Accounts Receivable

Outstanding payments due to a business from its customers for delivered or utilized services or products.