Rom Generators Is in the Process of Preparing a Production

question 67

Multiple Choice

Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: $$\begin{array} { l r } \text { Materials cost } & \$ 5,200 \\\text { Labor cost } & 2,600 \\\text { Rent } & 1,200 \\\text { Depreciation } & 1,700 \\\text { Other fixed costs } & { 4,600 }\\\text { Total }& { \$ 15,300 }\end{array}$$ Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget?

• A) $17,850
• B) $16,600
• C) $9,100
• D) $15,300

---

Definitions:

Medulla

The inner region of an organ or structure, such as the medulla oblongata in the brain or the adrenal medulla, involved in central functions.

Arcuate Artery

A type of artery, often referenced in relation to kidney or uterine structures, involved in supplying blood.

Ureters

Ureters are muscular tubes that transport urine from the kidneys to the bladder.

Stratified Squamous Epithelium

A type of tissue composed of several layers of flat cells designed to protect underlying tissues in areas subjected to abrasion.