Bob's Powerwasher Company Makes Custom Powerwashers for Individual Customers -Refer to the Figure

question 96

Multiple Choice

Bob's Powerwasher Company makes custom powerwashers for individual customers. On April 1, one job was in process, Job 900, which had a cost of $45,650. Jobs 901, 902, and 903 were started during the month of July. Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 85% of direct labour cost. Job 903 was completed on April 26, and the client was billed at cost plus 45%. All other jobs remained in process.
$\begin{array}{lllll}&\text { Job } 900&\text { Job } 901&\text { Job } 902&\text { Job } 903\\\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \\\text { Direct Labour } & \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360\end{array}$
-Refer to the Figure.Suppose selling and administrative expenses for the month of July equal $6,000.What is operating income for the month of July?

• A)$6,998.70
• B)$12,998.70
• C)$28,886.00
• D)$41,884.70

---

Definitions:

Extroverted Types

Individuals who are outgoing, social, and derive energy from interacting with others.

Interpersonal Relationships

The connections and interactions between two or more people which can involve emotional, social, and professional dynamics.

Lifestyle Dichotomy

The division or contrast between two different ways of living, especially between personal values and societal expectations.

Myers-Briggs Type Indicator

An assessment tool designed to identify a person's psychological type based on Carl Jung's theory of psychological traits.