Answer the Following Questions Using the Information Below:
Sunny Company

question 347

Multiple Choice

Answer the following questions using the information below:
Sunny Company makes gas pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labour-hour.The following data are obtained from the accounting records for June 2018:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-Which of the following systems separate costs into cost categories according to when costs are introduced into the process?
Variant question

• A)Normal costing
• B)Variable costing
• C)Absorption costing
• D)Process-costing

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Definitions:

Caudal

Pertaining to the tail or the posterior part of the body, typically used in reference to the anatomical direction away from the head.

Sagittal

Refers to a plane or section that divides the body into right and left portions.

Transverse

Relating to or extending across something at a right angle.

Coronal

refers to a direction in anatomy denoting a plane that divides the body into frontal (anterior) and back (posterior) parts.