Cardero Midwifery's Cost Formula for Its Wages and Salaries Is

question 128

Multiple Choice

Cardero Midwifery's cost formula for its wages and salaries is $2,280 per month plus $348 per birth. For the month of August, the company planned for activity of 118 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was $44,120. The wages and salaries in the planning budget for August would be closest to:

• A) $44,881
• B) $44,120
• C) $43,344
• D) $42,648

---

Definitions:

Operating Policies

Guidelines and rules that govern the day-to-day operations of an organization.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies by reporting those profits in proportion to their ownership percentage.

Controlling Interest

Ownership of a majority of a company's stock, allowing for the control of its management and operations.