Based on the Following Information What Is the Product Cost Based on Total Average Cost

question 126

Multiple Choice

Based on the following information: $\begin{array}{lrrrrr}&\text { Materials }&\text { Wages }&\text { Machining }&\text { Other }&\text { Total cost }\\\text { Order Processing}&\$28,000& & &&28,000\\\text { Purchasing } & 43,000 & & && 43,000 \\\text { Cutting } & \$ 160,000 & 36,000 & \$ 33,000 & \$ 8,000 & 237,000 \\\text { Forming } & 57,500 & 49,000 & 22,000 & 12,000 & 140,500 \\\text { Finishing } & 42,500 & 28,000 & 5,000 & & 75,500 \\\text { Testing } & & 30,000 & & & 30,000\\\text { Packaging and }\\\text { shipping }&&10,000&&&10,000\\\text { Invoicing }&&6,000&&&6,000\\\hline\text { Totals }&\$260,000&\$230,000&\$60,000&\$20,000&\$570,000\end{array}$

$\begin{array}{ll}\text { Part } A & 2,005 \text { units } \\\text { Part Q } & 4,100 \text { units } \\\text { Total } & 6.105 \text { units }\end{array}$ What is the product cost based on total average cost? (Round to nearest cent.)

• A)$54.05
• B)$42.59
• C)$48.32
• D)$93.37

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Definitions:

Peasants

Historically, members of the lower social class in rural areas, typically farmers who own or rent small plots of land for cultivation.

Legitimate Power

Authority that is recognized and accepted by others within an organizational or social structure, often derived from an official position or role.

Tyranny

Rule by those who wield their power oppressively and abusively.

Social Contract

An agreement, tacit or explicit, between all members of society, in which each citizen gives up certain rights and privileges in return for the protection and mutual advantage of society.