Truckel, Inc The Fixed Overhead Is an Allocated Common Cost

question 68

Multiple Choice

Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r } \text { Direct materials and direct labour } & \$ 11.00 \\\text { Variable overhead } & 3.00 \\\text { Fixed overhead } & \$ 2.00 \\\text { Total } & \$ 22.00\end{array}$$ The fixed overhead is an allocated common cost.How much is the relevant cost of the wicket?

• A)$24.00
• B)$14.00
• C)$11.00
• D)$19.00

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Definitions:

Total Revenue

Total revenue is the total amount of money generated by a business from the sale of its goods or services before any costs or expenses are subtracted.

Minimum Wage

A legally established lower limit on the hourly wage that employers can pay their employees.

Perfectly Competitive

Pertains to a market condition where all participants have equal access to information and transactions, resulting in an efficient distribution of resources.

Marginal Product

The additional output derived from employing one more unit of a given input, while keeping other inputs constant.