Figure 5-7 The Following Information Is Available Pertaining to the Production Division

question 80

Multiple Choice

Figure 5-7
The following information is available pertaining to the Production Division of Clarkson Enterprises:

-Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

• A) $1,250
• B) $2,000
• C) $8,750
• D) $31,250

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Definitions:

Land Taxes

Taxes imposed on property owners based on the value of their land, commonly used by governments as a source of revenue.

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Rental Payments

Rental payments are periodic payments made by a tenant to an owner for the use of property, such as for housing or commercial space.

Productive Efficiency

The production of a good in the least costly way; occurs when production takes place at the output at which average total cost is a minimum and marginal product per dollar’s worth of input is the same for all inputs.