Figure 4-4 Mannitou Company Made the Following Predictions for 2014

question 179

Multiple Choice

Figure 4-4 Mannitou Company made the following predictions for 2014:
Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
Refer to Figure 4-4. If factory overhead is applied based on direct labor hours, the cost of Job A2 for the Mannitou Company is

• A) $60,000.
• B) $75,000.
• C) $63,000.
• D) $66,000.

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Definitions:

Inelastic

Pertains to a scenario where the need for a product or service shows little reaction to fluctuations in its price.

Per Unit Price

The cost associated with a single unit of a product, illustrating the price at which one unit of the product can be purchased.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied to a change in one of its determinants.

Linear Demand Curve

A graphical representation showing a straight-line relationship between the price of a good and the quantity demanded.