Dent Lab Car Repair Projects Variable Labor Costs of $21,500

question 92

Multiple Choice

Dent Lab Car Repair projects variable labor costs of $21,500 in July when 8,600 units are produced.If production is expected to drop to 8,000 units in August, what is the expected labor cost in August?

• A)$21,500
• B)$20,000
• C)$23,113
• D)$20,900

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Definitions:

Statement of Financial Position

Another term for the balance sheet, showing a company's financial status by detailing assets, liabilities, and shareholders' equity at a specific point in time.

Identifiable Net Assets

The assets and liabilities of a company that can be separately identified and valued during a merger or acquisition process.

Issued Capital

refers to the total value of a company's shares that have been sold and are held by shareholders.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the company.