Refer to the Information Provided in Figure 15

question 102

Multiple Choice

Refer to the information provided in Figure 15.3 below to answer the question(s) that follow. Figure 15.3
-Refer to Figure 15.3. Gwen's Country Curtains is currently manufacturing and selling 1,000 pairs of curtains per month. The ________ for this company is $80,000.

• A) total cost
• B) profit
• C) total revenue
• D) fixed cost

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Definitions:

Standard Costs

Estimated costs of production, labor, and materials that are set in order to budget and control expenses.

Fixed Manufacturing Overhead

Expenses associated with manufacturing that do not vary with the level of production, including salaries of managers and depreciation of equipment.

Direct Labor Costs

Expenses directly tied to the work of employees manufacturing a product or delivering a service.

Work in Process

A category of inventory representing items currently being manufactured but not yet completed.