-The Table Above Gives Production Information for Bob's Baseball Cap

question 370

Multiple Choice

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average fixed cost of producing 25 baseball hats per hour is

• A) $1.60
• B) $8.00.
• C) $9.60.
• D) More information is needed to answer the question.

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Definitions:

Work In Process Inventory

Refers to the inventory that has begun the manufacturing process but is not yet completed.

Processing Department

A division within a manufacturing facility where a specific operational task or series of tasks is performed to convert raw material into finished goods or semi-finished goods.

Job Order Cost Cards

Documents used to record and track the materials, labor, and overhead costs assigned to individual jobs or batches in production.

Perpetual Inventory Accounts

An inventory tracking system where updates are made continuously as transactions occur, providing a real-time view of inventory levels.