Scottso Enterprises Has Identified the Following Overhead Costs and Cost

question 26

Multiple Choice

Scottso Enterprises has identified the following overhead costs and cost drivers for the coming year: Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000.The following information was collected on three jobs that were completed during the month: The company prices its products at 150% of cost.If the company uses activity-based costing (ABC) ,the price of each unit of Job B-32 would be:

• A)$96.53.
• B)$144.80.
• C)$130.00.
• D)$226.53.

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A financial metric indicating the value of a series of cash flows over time in today's dollars.

Capital Budgeting

The process a business undertakes to evaluate potential major investments or expenditures to ensure financial viability and return on investment.

Tax Haven

A country or jurisdiction with very low or no taxes, often used by businesses and wealthy individuals to reduce their tax liability.