Birdflu Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

question 114

Multiple Choice

Birdflu Company manufactures a part for its production cycle.The costs per unit for 38,000 units of this part are as follows: $\begin{array} {ll}\text {Direct materials}&\$3\\\text {Directlabor}&5\\\text {Variable factory overhead}&4\\\text {Fixed factory overhead}&6\\\text {Total costs}&\$16\\\end{array}$ The fixed factory overhead costs are unavoidable.Assuming no other use of their facilities, the highest price that Birdflu Company should be willing to pay for the part is _____.

• A)$12
• B)$16
• C)$8
• D)$11

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Definitions:

Casual Listening

Listening for enjoyment or entertainment without seeking to critically analyze or evaluate the content.

Selective Listening

The process of listening to only parts of a message or paying attention only to messages that align with one’s own interests or beliefs.

Discriminative Listening

The skill of listening with the aim of analyzing and evaluating the information being presented, often to discern subtle nuances.

Isolator

A device or equipment used to prevent the transfer of electrical or mechanical energy to its surroundings.