Consider the Budget Information for Bert and Ernie Design Firm

question 39

Multiple Choice

Consider the budget information for Bert and Ernie Design firm: Bert and Ernie decide there are two cost pools,design support,which is assigned to jobs based on the number of rooms redone,and facilities costs,which is assigned to jobs based on the number of professional labor hours.The design support cost pool includes design equipment depreciation and samples and books.The lease expense and utilities are considered facilities costs. What is the budgeted rate per cost driver for design support?

• A)$17.50
• B)$35.00
• C)$ 0.35
• D)$ 0.70

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Definitions:

Commercial Money Market

A segment of the financial market where commercial banks and other institutions lend and borrow short-term, high-quality debt securities.

Unconditionally

Without any conditions or limitations; absolutely.

Draft

A preliminary version of a piece of writing or document that is open for discussion, modification, or approval.

Instrument Value

The actual worth or significance of a financial document, like a stock or bond, in transactions.