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  3. Cornerstones of Managerial Accounting Study Set 1
  4. Quiz 13: Short-Run Decision Making: Relevant Costing

Acron Construction Charges Each Customer a Price Equal to the Cost

Question 46
Multiple Choice

Acron Construction charges each customer a price equal to the cost of direct materials and direct labour plus 40%.Job 126 included the following costs: img What price does Acron charge for Job 126? A) $46,800 B) $65,400 C) $86,000 D) $148,400

Related questions
Q 47
Home Hardware sets prices at cost plus 90% of cost.The cost of a cordless drill kit is $45.What price is charged by Home Hardware for the cordless drill kit? A) $27.50 B) $34.00 C) $42.00 D) $85.50
Q 48
Travers Company sets prices equal to cost plus 55%.Recently,Travers charged a customer a price of $60 for an item.What was the cost of the item to Travers? A) $25.20 B) $38.71 C) $40.32 D) $42.00
Q 49
Winston Custom Cabinetry makes cabinets to order and prices the completed jobs at product cost plus 40%.Recently,Winston finished a job and billed the customer $560.Suppose direct materials for the job cost $130 and direct labour cost $180.What was the applied overhead for the job? A) $90 B) $179 C) $250 D) $350
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