Star Corporation Manufactures Custom Molds for Use in the Extrusion

question 319

Multiple Choice

Star Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 732 are as follows: What is the manufacturing cost of Job 732?

• A) $8,100
• B) $11,700
• C) $11,100
• D) $3,600

---

Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present values, reflecting the opportunity cost of capital.

Project Profitability Index

A measure used to evaluate the attractiveness of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.

Initial Investments

The upfront money used to fund a new project, purchase a company, or make an investment, typically associated with starting costs.

Investment Projects

Initiatives or plans that require capital investment to generate financial returns or achieve business objectives over time.