Table 13-10 Jimmy's Gigaplots Factory

question 358

Multiple Choice

Table 13-10
Jimmy's Gigaplots Factory

-Refer to Table 13-10.What is the average fixed cost of producing 3 gigaplots at Jimmy's Gigaplot factory?

• A) $1.67
• B) $2.67
• C) $5.33
• D) $8.33

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Definitions:

Labor-Hours

The total hours worked by employees, usually in the context of manufacturing or production, that can be used to allocate costs or measure productivity.

Predetermined Overhead Rate

A calculated rate used to apply manufacturing overhead costs to products, based on estimated costs and activity levels before a period begins.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a set formula prior to the start of a period.

Manufacturing Overhead

Indirect costs related to the production process, such as equipment maintenance and factory rent.