Rapid Rails Company Rapid Rails Company Manufactures Toy Airplanes The Following Information Applies to the Upcoming Month of July

question 116

Multiple Choice

Rapid Rails Company Rapid Rails Company manufactures toy airplanes.Information on Rapid Rails Company's labor costs follow:
$\begin{array}{ll}\text { Sales commissions } & \$ 6 \text { per plane } \\\text { Administration } & \$ 12,000 \text { per month } \\\text { Indirect factory labor } & \$ 4 \text { per plane } \\\text { Direct factorylahor } & \$ 6 \text { per plane }\end{array}$ The following information applies to the upcoming month of July for Rapid Rails Company:
Budgeted production $~~~~~~~~~~~$ 1,500 units
Budgeted sales $~~~~~~~~~~~~~~~~~~~$ 1,300 units Refer to Rapid Rails Company.What is Rapid Rails' budgeted factory labor cost for July?

• A)$13,000
• B)$24,000
• C)$34,000
• D)$15,000

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Definitions:

Reciprocal Dealing Agreement

An agreement between two parties where each agrees to purchase goods or services from the other, often used to strengthen business relationships.

Exclusive Dealing

An arrangement where a retailer or distributor is restricted to purchasing or selling the products of one supplier.

Wholly Owned

A company or entity that is 100% owned by another company or individual.

Vertical Boycott

An anti-competitive practice where companies at different supply chain levels agree not to deal with a particular company or group.