Use the Following Information to Answer the Following Questions

question 3

Multiple Choice

Use the following information to answer the following Questions
Fort Smith Technologies incurred the following costs during the past year when planned production and actual production each totaled 20,000 units:


-If Fort Smith uses variable costing, the total inventoriable costs for the year would be:

• A) $400,000.
• B) $460,000.
• C) $560,000.
• D) $620,000.
• E) $660,000.

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Definitions:

Fleet Wide Gas Mileage

The average fuel efficiency across all vehicles within a defined fleet.

Auto Makers

Auto makers are companies engaged in the design, manufacturing, marketing, and selling of motor vehicles.

Core Inflation Rate

A measure of inflation that excludes volatile items such as food and energy, giving a clearer view of long-term inflation trends.

CPI Basket

A representative collection of goods and services used to calculate the Consumer Price Index.