The King Corporation Manufactures Custom-Made Furniture Factory Overhead Rate Is $22

question 85

Multiple Choice

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
$$\begin{array} { l l } \text { Direct materals placed into production } & \$ 9,000 \\\text { Direct labour hours warked } & 300 \text { hours } \\\text { Direct labou rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.
-Refer to the figure.One-half of Job X4A was sold for $10,000.What is the total amount of costs assigned to Job X4A?

• A)$9,000
• B)$13,500
• C)$15,750
• D)$20,250

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Definitions:

Income Elasticity

A measure of how much the demand for a good will change in response to a change in consumers' income.

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, in contrast to normal goods, whose demand increases with rising incomes.

Shoes

Footwear items designed to protect and comfort the human foot while offering various styles and functions.

Income Elasticity

Measures how the quantity demanded of a good changes in response to a change in consumers' income.