Sam Is Purchasing 800 Shares of RPT, Inc

question 43

Multiple Choice

Sam is purchasing 800 shares of RPT, Inc., stock at a price per share of $24.50. What is the minimum amount the Federal Reserve will require Sam to pay in cash for this purchase?

• A)$4,488
• B)$6,200
• C)$9,800
• D)$10,968
• E)$11,960

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Definitions:

Direct Labor Hour

A measure of the labor directly spent on manufacturing a product, often used as a basis for allocating labor costs to products.

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost.

Direct Materials

Raw materials that are consumed in the production process and can be directly traced to the end product.

Total Variable Overhead Variance

The difference between the expected and actual costs of variable overheads in a manufacturing or production process.