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

question 51

Multiple Choice

Fird Company manufactures a part for its production cycle.The costs per unit for 10,000 units of this part are as follows: $\begin{array}{lr}\text { Direct materials } & \$ 20 \\\text { Directlabor } & 15 \\\text { Variable factory overhead } & 16 \\\text { Fixed factory overhead } & 15 \\\text { Total costs } & \$ 66\end{array}$ The fixed factory overhead costs are unavoidable.Assuming no other use of their facilities, the highest price that Fird Company should be willing to pay for the part is _____.

• A)$41
• B)$35
• C)$45
• D)$51

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Definitions:

Lead Second

Assuming a leadership or influential position after serving in a supporting or subordinate role; often involves supporting a primary leader before taking a lead role.

Metabolic Rate

The speed at which the body consumes energy to maintain basic life functions, such as breathing and circulation.

Dietary Restriction

Limitations on the amount and type of food ingested for reasons such as health, religious beliefs, or ethical choices.

Ghrelin

A hormone produced mainly by the stomach that stimulates appetite and promotes fat storage.