The Bus Company Uses a Job-Order Costing System The Direct Labour Wage Rate Is $10 Per Hour

question 37

Multiple Choice

The Bus Company uses a job-order costing system. The following information was recorded for September: $\begin{array}{l}\text { Added During September }\\\begin{array} { | l | r | r | r | } \hline \text { Job Number } & \begin{array} { r } \text { September 1 } \\\text { Inventory }\end{array} & \text { Direct Materials } & \text { Direct Labour } \\\hline 1 & \$ 1,000 & \$ 300 & \$ 200 \\\hline 2 & 1,400 & 250 & 300 \\\hline 3 & 500 & 1,500 & 150 \\\hline 4 & 750 & 4,000 & 400 \\\hline\end{array}\end{array}$ The direct labour wage rate is $10 per hour. Overhead is applied at the rate of $5 per direct labour hour. Jobs 1, 2, and 3 have been completed and transferred to finished goods. Job 2 has been delivered to the customer.
-What is the cost of goods sold for September (before disposition of any under- or overapplied overhead) ?

• A) $2,100.
• B) $5,925.
• C) $3,700.
• D) $1,950.

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Definitions:

Confounding Variables

Factors other than the independent variable that might affect the outcome of an experiment or study, potentially leading to erroneous conclusions.

Diastolic Blood Pressure

The pressure in the arteries when the heart rests between beats, considered the lower number in a blood pressure measurement.

Response Variable

The variable in an experiment or study that is affected by the manipulation of the independent variable, also known as the dependent variable.

Low Dosage

A smaller amount of a particular substance administered than is typical or recommended.