Answer:
C. $1,370,000
Explanation:
Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity
Direct material $340,000
Direct labor $610,000
Allocated variable overhead $420,000
Minimum bid price $1,370,000
($340,000+$610,000+$420,000)
Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000
Answer:
B) Direct materials are used to determine total inventoriable product costs.
Explanation:
Product costs includes direct materials, direct labor & manufacturing overhead.
This makes Choice B a description of direct materials in a manufacturing setting. All other choices are false.
Their is a chance to use direct labor as a basis for manufacturing overhead but not direct materials.
Direct materials can be separately and conveniently traced.
And finally, as stated above, direct materials are part of the finished product.
This is often referred to as the clinical approach. The clinical approach is also known as the threshold approach to clinical decision making. This approach combines rational and quantitative information with a general approach to decision making. In this situation, say you were hiring a new employee, a person using the clinical approach would look at their resume in how they match up with numbers and on paper to the candidate their looking for but also who they are as a person in a general sense.
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