Fast Prints Has a Contract with Local Couriers to Deliver

question 25

Multiple Choice

Fast Prints has a contract with local couriers to deliver their products to customers located throughout the city and it cost Fast Prints $5,000 in legal fees to establish the contracts. Fast Prints charges $25 for each set of 500 copies delivered in the city. What are Fast Prints' transaction costs?

• A)$5,000
• B)$25
• C)$5,025
• D)$4,975

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Definitions:

Budget Performance Report

A financial report comparing the budgeted amounts to the actual amounts for a specific period, highlighting variances.

Direct Labor Rate Variance

The difference between the actual cost of direct labor used in production and the expected (or standard) cost, which can indicate efficiency in labor usage.

Actual Rate Per Hour

The true cost or payment rate for labor or services rendered, calculated on an hourly basis.

Standard Rate Per Hour

The predetermined cost or rate applied to labor or services per hour for budgeting and costing purposes.