Gem Systems Gem Systems Uses an Activity-Based Costing System.The Company Has Gathered

question 75

Multiple Choice

Gem Systems
Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers;

The following data was collected and is specific to Job 150.

Refer to Gem Systems.Calculate the product cost of one unit of Job 150.

• A)$11.74
• B)$13.00
• C)$ 8.74
• D)$16.74

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Definitions:

Incremental Costs

Incremental costs are the additional costs that are incurred from producing an additional unit of product or making a decision.

Incremental Revenue

The increase in income resulting from a specific business decision, distinct from the company's base revenue level.

Overhead

Overhead refers to the ongoing administrative and general expenses of a business that are not directly tied to a specific product or service production but are necessary for the business's operations.

Direct Labor

The labor costs directly tied to the production of goods or services, which can be directly attributed to specific units of production.