Truliant Co

question 70

Multiple Choice

Truliant Co. sells a product called Withitall and has predicted the following sales for the first four months of the current year: Ending inventory for each month should be 20% of next month's sales.  How many units should be produced in February?

• A) 1,940
• B) 1,800
• C) 1,900
• D) 1,850

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Definitions:

Standard Costs

Predetermined costs for manufacturing a product or service, used as a benchmark to measure the actual costs of production.

Product Specifications

Detailed descriptions of a product's characteristics, materials, and performance criteria, setting the standards for production and quality.

Union Contract

A legal agreement between a labor union and an employer that outlines the terms of employment, including wages, working hours, work conditions, and grievance procedures.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the hourly wage rate.