Variable Cost Per Unit Is Budgeted to Be $8

question 116

Multiple Choice

Variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced.If production is actually 5,100 units, what is the expected total cost of the units produced?

• A)$52,000
• B)$60,800
• C)$66,300
• D)$40,800

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Definitions:

Provincial Government

A level of government below the national or federal level, responsible for the governance of a province or region.

Replacement Stream

A sequence of cash flows expected to be received or paid over time in order to replace an asset or meet an obligation.

Economically Equivalent

Economically equivalent means having the same or similar economic effect or value when comparing two or more financial situations or variables.

Economic Value

Refers to the worth of a good or service, as determined by the market or its utility to an individual or business.