The Following Information Was Obtained from Sizzler Company

question 85

Multiple Choice

The following information was obtained from Sizzler Company:
• Advertising costs: $7,900
• Indirect labor: $9,000
• Direct Labor: $31,000
• Indirect materials: $7,200
• Direct materials: $47,000
• Factory utilities: $3,000
• Factory repair and maintenance: $700
• Factory janitorial costs: $1,900
• Manufacturing equipment depreciation: $1,600
• Delivery vehicle depreciation: $790
• Administrative wages and salaries: $19,000
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How much were Sizzler's period costs?

• A) $27,690
• B) $7,900
• C) $19,790
• D) $19,000

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Definitions:

Just-in-time System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through receiving goods only as they are needed in the production process.

Client Specifications

Client specifications are detailed descriptions provided by a client outlining the requirements, standards, and criteria for a project or product.

Quality

Good or service that is free of deficiencies.

Prices

The amounts of money expected, required, or given in payment for something.