Rubal Inc Earned Revenue of $400,000 and Incurred Cost of Goods

question 27

Multiple Choice

Rubal Inc. earned revenue of $400,000 and incurred cost of goods sold of $320,000. Calculate the gross profit percent.

• A)75%
• B)20%
• C)60%
• D)80%

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Definitions:

Machine Setups

The process and associated costs of configuring machinery to produce a specific product or batch of products.

Activity Cost Pool

A compilation of all the costs related to a specific activity or process in cost accounting.

Overhead

The ongoing administrative and operational expenses of a business that are not directly attributable to specific business activities.

Direct Labor-Hours

A measure representing the total hours worked directly on the production of goods or the provision of services.