Refer to the Following Table

question 9

Multiple Choice

Refer to the following table.What is the total cost of producing five (5) units of the good?

• A)$1,050
• B)$950
• C)$1,025
• D)$825
• E)$1,000

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Definitions:

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Manufacturing Overhead

The sum of all costs involved in the production process other than direct materials and labor, such as utilities and rent for the manufacturing facilities.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of units produced, multiplied by the standard fixed overhead rate.

Labour Efficiency Variance

The difference between the actual labor hours taken to produce a good and the standard hours expected, multiplied by the standard labor rate.