Eyestone Corporation Has Two Divisions, a and B

question 55

Multiple Choice

Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: If common fixed expenses were $17,000, total fixed expenses were:

• A) $48,000
• B) $13,000
• C) $31,000
• D) $53,000

---

Definitions:

Manufacturing Equipment

The machinery and tools used in the manufacturing process to produce goods or products.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Prime Cost

The sum of direct materials and direct labor costs in the production of goods, excluding overhead expenses.

Inventoriable Cost

Direct costs associated with the production of goods, including materials and labor, that are capitalized as inventory on the balance sheet until sold.