Use the Information Below to Answer the Following Question(s)

question 296

Multiple Choice

Use the information below to answer the following question(s) .
Job 2908 requires $12,000 of direct materials, $5,500 of direct labour, 500 direct labour hours, and 250 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $25 per direct labour hour used and $45 per machine hour used.
-The total amount of overhead allocated to Job 2908 is

• A) $23,750.
• B) $30,000.
• C) $41,250.
• D) $12,500.

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Definitions:

Fixed Price

A set price that does not change over time, typically in contract agreements for goods or services, offering predictability in costs.

Pure Play Method

An approach in finance where investments are made in companies that specialize in a single line of business or sector to achieve specific exposure.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 means the stock is more volatile than the market, while below 1 means less.

NPV

Net Present Value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.