Cost behavior refers to:

dassifying costs as either inventoriable or period costs.

whether a cost is incurred in a manufacturing, merchandising, or service company.

how costs react to a change in the level of activity.

whether a particular expense has been ethically incurred.

Question $1$

You will use the following information for questions $1$ through $3$ :

Jaguar Company employs a normal costing system. The following information is from the financial records of the company for the year.

Total manufacturing costs were $$2,500,000.$

Cost of goods manufactured was $$2,425,000$

Applied factory overhead was $30\%$ of total manufacturing costs.

$-$Factory overhead was applied to production at a rate of $80\%$ of direct labor cost.

Work$-$in$-$process inventory at January $1$ was $75\%$ of work$-$in$-$process inventory at December $31.$

Jaguar Company's total direct labor cost for the year is

$$750,000$

$$909,375$

$$600,000$

$$937\mathrm{.}500$