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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 20
(2009 CPA Exam)
Merry Co. has two major categories of factory overhead: materials handling and quality control. The costs expected for these categories for the coming year are as follows:
The plant currently applies overhead based on direct labor hours. The estimated direct labor hours are 80,000 per year. The plant manager is asked to submit a bid and assembles the following data on a proposed job.
What amount is the estimated product cost on the proposed job?
a. $8,000
b. $10,000
c. $14,000
d. $18,000
Merry Co. has two major categories of factory overhead: materials handling and quality control. The costs expected for these categories for the coming year are as follows:
The plant currently applies overhead based on direct labor hours. The estimated direct labor hours are 80,000 per year. The plant manager is asked to submit a bid and assembles the following data on a proposed job.
What amount is the estimated product cost on the proposed job?
a. $8,000
b. $10,000
c. $14,000
d. $18,000
Explanation
Verified
Verified
The overhead costs of Merry Co. are ment...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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