The Llama Wool Shoppe Bought 225 Wool Overcoats for $16

question 48

Multiple Choice

The Llama Wool Shoppe bought 225 wool overcoats for $16 875; 75 overcoats were sold at a markup of 160% of cost and 100 overcoats at a markup of 115% of cost; 20 of the overcoats were sold during a clearance sale for $130.00 each and the remaining overcoats were disposed of at 11% below cost. Assume all overcoats had the same cost. What was the markup realized on the purchase?

• A) $18 477.50
• B) $18 677.50
• C) $18 758.75
• D) $18 215.00
• E) $18 555.00

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Definitions:

Labor Variances

Differences between the actual labor costs incurred and the standard labor costs expected for the work performed.

Standard Labor Rate

A predetermined cost per labor hour, used in budgeting and cost control for planning and evaluating labor expenses.

Actual Hours Incurred

The real number of hours worked or used in the completion of a task or production of a good, as opposed to the estimated hours.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost multiplied by the quantity of materials used.