Use the Following Data to Answer Questions 80-85

question 2

Multiple Choice

Use the following data to answer questions 80-85.
-Consider the data on Inventory for Blenders Over a 20-Day Period.Any time that ending inventory falls to 15 or below,an order is placed for 30 units of the product.The lead time for delivery varies and is shown in the column under Lead Time.If the backorder costs were $19 per unit,what are the total backorder costs during the 20-day period?

• A)$133
• B)$113
• C)$76
• D)$182

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Definitions:

Absorption Costing

A pricing technique that integrates all expenses related to production, such as direct materials, direct labor, along with both variable and fixed overhead costs, into a product's cost.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company's main business activities.

Gross Profit

The difference between the revenue generated from sales and the cost of goods sold, excluding operating expenses, interest, and taxes.

Cost Of Goods Manufactured

The total production cost of goods that were completed during a specific accounting period, including labor, material, and overhead costs.