Answer the Following Questions Using the Information Below:
Apple Valley

question 56

Multiple Choice

Answer the following questions using the information below:
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
$\begin{array}{lll}&\text { Department A }&\text { Department B }\\\text { Direct materials } & \$ 700,000 & \$ 100,000 \\\text { Direct manufacturing labor } & \$ 200,000 & \$ 800,000 \\\text { Manufacturing overhead } & \$ 600,000 & \$ 400,000\end{array}$
$\text { The actual material and labor costs charged to Job \#432 were as follows: }$
$\begin{array}{lr}\text { Direct materials: } & \$ 25,000 \\\text { Direct labor: } & \\\text { Department A } & \$ 8,000 \\\text { Department B } & \$ 12,000 \\& \$ 20,000\end{array}$ Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.
-Manufacturing overhead costs allocated to Job #432 total ________.

• A) $30,000
• B) $12,000
• C) $24,000
• D) $36,000

Grasp the concept and effects of the law of diminishing returns in various sectors.

Understand the behavior of average fixed costs (AFC) as production levels change.

Interpret and analyze the flattening of U-shaped ATC curves and its implications on returns to scale.

Differentiate economic principles through theoretical and real-life examples, such as Adam Smith’s specialization principle and Parkinson's Law.

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Definitions:

Industrial Relations

Is the process of negotiation and bargaining between employers and employees.

Business Associations

Represent the interests of organisations in an industry or region.

Occupational Health

A field of healthcare that focuses on the physical and mental well-being of employees in the workplace by preventing and addressing injuries and illnesses that may arise from work activities.

Profit Margins

The percentage of revenue remaining after deducting the cost of goods sold, symbolizing the financial health and profitability of a business.