On the Basis of This Information,the Variable Cost Per Machine

question 48

Multiple Choice

On the basis of this information,the variable cost per machine hour was:

• A)$8.40.
• B)$22.00.
• C)$25.00.
• D)$30.40.
• E)$33.40.

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Definitions:

Economic Order Quantity

A formula that calculates the optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Stock

Shares of ownership in a corporation or assets that represent an ownership interest.

Shortage Costs

The costs incurred when demand exceeds supply, including lost sales, expedited shipping fees, and decreased customer satisfaction.

Disrupted Production

Interruptions in the normal flow of manufacturing processes due to unforeseen events, leading to delays and potential financial losses.