Solve the Problem. -A Lumber Yard Has Fixed Costs of $1384.90 Per Day

question 105

Multiple Choice

Solve the problem.
-A lumber yard has fixed costs of $1384.90 per day and variable costs of $0.56 per board-foot produced. Lumber sells for $1.66 per board-foot. How many board-feet must be produced and sold daily to break even?

• A) 623 board-feet
• B) 2473 board-feet
• C) 1259 board-feet
• D) 839 board-feet

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Definitions:

Job Cost Sheets

Documents that record and summarize the costs associated with a specific job or project, helping in tracking direct materials, direct labor, and overhead.

Job Order Cost System

An accounting method that accumulates costs for each individual job or project, tracking materials, labor, and overhead.

Uniform Products

Products that are identical in quality and performance, manufactured to meet a standard specification.

Cost Accounting

An area of accounting that involves measuring, recording, and reporting product costs.