-The Above Table Gives Some Production and Cost Information for Flaming

question 172

Multiple Choice

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the total fixed cost of producing 4,500 frijoles?

• A) $1000
• B) $8000
• C) $9000
• D) More information is needed to determine the answer.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a direct cost in the manufacturing process.

Finished Manufactured Product

A product that has completed the manufacturing process and is ready for sale to customers.

Factory Overhead

Factory overhead encompasses all indirect costs related to manufacturing, such as utilities, maintenance, and management salaries.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically a financial year.