Venus Crates Manufactures Custom Crates for a Variety of Uses

question 296

Multiple Choice

Venus Crates manufactures custom crates for a variety of uses. The following data have been recorded for Job 551, which was recently completed. Direct materials used cost $7700. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. There were 179 direct labor hours worked on this job at a direct labor wage rate of $31 per hour. What is the total manufacturing cost of Job 551?

• A)$16,129
• B)$5549
• C)$2880
• D)$7969

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a period of time, typically expressed as a percentage.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Nominal Rate of Interest

The rate of interest before adjustment for inflation, reflecting the rate at which money will grow over time without considering the purchasing power of that money.

Real Rate of Interest

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.