A Partial Listing of Costs Incurred During December at Gagnier

question 40

Multiple Choice

A partial listing of costs incurred during December at Gagnier Corporation appears below:
-The total of the manufacturing overhead costs listed above for December is:

• A)$325,000
• B)$635,000
• C)$89,000
• D)$40,000

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Average Total Assets

A measure calculated by averaging the total assets a company has at the beginning and end of the financial period, used to evaluate asset efficiency.

Net Sales

The amount of a company's gross sales minus its returns, allowances, and discounts.

Days' Sales in Inventory

A financial metric indicating the average number of days a company takes to sell its inventory.