Teddy's Pillows Had Beginning Net Fixed Assets of $648 and Ending

question 80

Multiple Choice

Teddy's Pillows had beginning net fixed assets of $648 and ending net fixed assets of $621.Assets valued at $285 were sold during the year.Depreciation was $76.What is the amount of net capital spending?

• A)$334
• B)$236
• C)$115
• D)$49
• E)$66

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Definitions:

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and materials, which are only incurred as a result of manufacturing activities.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing to covering fixed costs and generating profit.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.