A Company Estimates the Following Expenditures: Preferred Dividends Paid of $12,200;

question 54

Multiple Choice

A company estimates the following expenditures: preferred dividends paid of $12,200; wages paid to workers of $79,600; overhead costs of $14,300; raw materials of $25,000; shipping costs of $18,100.What are the total production costs?

• A)$131,000
• B)$137,000
• C)$149,200
• D)$153,200

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Definitions:

Vehicle Operating Cost

Expenses related to the operation of a vehicle, including fuel, maintenance, and repairs.

Spending Variance

The difference between the budgeted or standard cost of something and its actual cost.

Supplies Cost

The total expense incurred from acquiring supplies necessary for the operation of a business, including office, cleaning, and manufacturing supplies.

Activity Variance

The difference between the budgeted amount of an activity and its actual cost or output.