A Manufacturer of Tiling Grout Has Supplied the Following Data

question 106

Multiple Choice

A manufacturer of tiling grout has supplied the following data:
-The company's degree of operating leverage is closest to:

• A)8.64
• B)1.55
• C)4.00
• D)1.08

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Definitions:

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, not including indirect labor costs like maintenance.

Work in Process Costs

Costs assigned to goods that are in the process of being manufactured but are not yet complete.

Manufacturing Costs Assigned

The allocation of manufacturing costs to individual products or job orders based on direct materials, direct labor, and applied overhead.

Job Cost Sheets

Documents used to record and track the materials, labor, and overhead costs associated with a specific job.