Neptune Accounting Services Expects Its Accountants to Work for 24,000

question 104

Multiple Choice

Neptune Accounting Services expects its accountants to work for 24,000 direct labor hours per year.The company's estimated total indirect costs are $240,000.The direct labor rate is $75 per hour.The company uses direct labor hours as the allocation base for indirect costs.If Neptune performs a job requiring 40 hours of direct labor,what is the total job cost?

• A)$7,000
• B)$400
• C)$3,400
• D)$3,000

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Definitions:

Volume Density

Volume density, in logistics and material science, relates to the mass of an object or substance per unit volume, influencing shipping costs, storage requirements, and handling methods.

Transportation Costs

Expenses related to the movement of goods or materials from one location to another, including costs for shipping, freight, fuel, and warehousing.

Remanufacturing

The process of restoring used products to a condition of quality comparable to that of new products, often involving disassembly, cleaning, repair, and reassembly.

Margins

The difference between the cost of producing goods and the selling price, often expressed as a percentage of revenue.