Wilson Custom Cabinetry Makes Cabinets to Order and Prices the Completed

question 155

Multiple Choice

Wilson Custom Cabinetry makes cabinets to order and prices the completed jobs at product cost plus 40%.Recently, Wilson finished a job and billed the customer $560.If direct materials for the job cost $130, and direct labor cost $180, what was the applied overhead for the job?

• A) $250
• B) $179
• C) $350
• D) $400
• E) $90

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Movie Rental

The temporary provision of a film for personal viewing, typically in exchange for a fee.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Budget Constraint

A concept in economics that represents all the combinations of goods and services that a consumer may purchase given current prices and their income level.