Daly Company Produces a Part That Is Used in the Manufacture

question 36

Multiple Choice

Daly Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows: $\begin{array}{lr}\text { Direct materials } & \$ 108,000 \\\text { Direct labor } & 156,000 \\\text { Variable factory overhead } & 72,000 \\\text { Fixed factory overhead } & 168,000 \\\text { Total costs } & \$ 504,000\end{array}$ Of the fixed factory overhead costs, $72,000 is avoidable.Assuming no other use of their facilities, the highest price that Daly Company should be willing to pay for 5,000 units of the part is _____.

• A)$504,000
• B)$336,000
• C)$408,000
• D)$288,000

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Definitions:

Nonverbal Communication

The exchange of information or expression of feelings without the use of spoken words, often through body language, facial expressions, gestures, and other physical signs.

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A record or account of an individual's sexual activities, preferences, and significant events related to their sexual health and development.

Sexual Script

refers to the norms and rules that socially define acceptable and appropriate sexual behavior.

Halo Effect

The assumption that attractive or charismatic people possess more desirable social characteristics than are actually present.