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Please show how you got the answer. Thank you Question 13 0 out of 8 points Tevye Total Boats produces custom boats and uses job-order
Please show how you got the answer. Thank you
Question 13 0 out of 8 points Tevye Total Boats produces custom boats and uses job-order costing. This month the firm completed two custom boats, and management believes the firm lost money on at least one of these boats. These jobs have the following consumption. Sales price Direct materials Direct labor Machine hours Direct labor hours Anatevka Boat $475,000 $50,000 $150,000 500 1,000 Lazar Wolf Boat $375,000 $75,000 80,000 400 600 The firm is organized into three departments. These departments use different types of overhead, and thus the firm applies overhead based on departmental pre-determined overhead rates. Department 1: $150 per machine hours Department 2: $100 per direct labor hours Department 3: $1.50 per dollar of direct materials cost Which of the following is TRUE? Selected Answer: b. Both boats were profitable a. The Anatevka Boat was profitable but the Lazar Wolf Boat was not. b. Both boats were profitable c. Both boats were UNprofitable d. The Lazar Wolf Boat was profitable but the Anatevka Boat was not. AnswerSStep by Step Solution
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