The Accounting Break-Even Production Quantity for a Project Is 6,208

question 107

Multiple Choice

The accounting break-even production quantity for a project is 6,208 units. The fixed costs are $27,400 and the contribution margin is $5.20. What is the projected depreciation expense?

• A) $4,413.66
• B) $4,881.60
• C) $5,002.50
• D) $5,087.30
• E) $5,133.33

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Definitions:

Direct Materials

Ingredients essential to the production of a product, which can be directly linked to its manufacture and are integral to the completed item.

Time Tickets

Documents used to record the amount of time an employee spends on various tasks, which is useful for cost accounting purposes.

Materials Requisitions

Documents used to request and track the transfer of materials from inventory for production or other uses within a company.

Work in Process Inventory

Items that are currently being manufactured but have not yet reached completion.