m 2 Ch 14 1516 If one unt of Product 22 used 250 of direct m

m 2 Ch 14, 15&16 If one unt of Product 22 used $2.50 of direct materials and $3 00 of direct labor, sold for $8,00, and was assigned overhead at the rate of 30% of direct labor costs, how 21 Mutple Choice $8.00 $5 50 $250 S160 $0.90

Solution

21) $1.60 ,

Selling price = $8

Direct material = ($2.5)

Direct labor = ($3)

overhead (0.3 *$3) = ($0.9)

Gross profit = $1.6

22) Mass production , job costing does not include mass production because it is for manufacturing special products for special order

23) Customised production , it is process of manufacturing special or unique products for special order

24) The cost incurred by the marketing department in selling the job , Products are not for use of regular customers, they are made on special orders to special customers,so there is no selling expense or marketing expense as these products are not sold on regular basis .