A Business Operated at 100% of Capacity During Its First

question 134

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

• A) $104,000
• B) $106,000
• C) $140,000
• D) not reported

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Definitions:

Due Date

The specified date by which a task, project, or payment is required to be completed or submitted.

Priority Rule

A guideline or criterion used to determine the sequence in which tasks or operations will be carried out in a process or system.

Johnson's Rule

A scheduling rule aimed at minimizing job setup or processing time and the total time to complete a group of jobs on two machines.

Sequencing Rule

Guidelines or algorithms used to determine the order in which tasks, operations, or jobs should be executed to optimize efficiency and outcomes.