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:

U.S. GNP

Gross National Product of the United States, which is the total market value of all final goods and services produced by residents of the country within a specific time period, regardless of production location.

American Doctor

A licensed medical practitioner in the United States qualified to diagnose and treat illnesses, injuries, and other health conditions.

Net Exports

The net trade balance of a country, calculated by subtracting its total imports from its total exports.

Imports

Products and services imported from other countries for the purpose of selling them domestically.