Answer the Following Questions Using the Information Below

question 167

Multiple Choice

Answer the following questions using the information below:
Joni's Kitty Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs.
-Manufacturing overhead cost estimates for this special order total:

• A)$10,000
• B)$30,000
• C)$36,000
• D)None of these answers is correct.

---

Definitions:

Marginal Benefit

The enhanced utility or pleasure that comes from acquiring or making an additional unit of a good or service.

Social Regulation

Laws and rules designed to correct behaviors and practices that affect public welfare, including environmental protection, health, and safety standards.

Antitrust Policy

A set of laws and regulations designed to promote competition and prevent monopolies, ensuring a fair and competitive market landscape.

Social Regulation

Regulatory policies aimed at improving societal welfare by correcting market failures, protecting the environment, and ensuring consumer safety.