The Following Information Was Obtained from Sizzler Company

question 82

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 was Sizzler's factory overhead?

• A) $24,190
• B) $1,600
• C) $23,400
• D) $3,600

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to do one thing instead of another.

Imported

Products or services imported from another country for the purpose of selling them.

Exported

Offerings or goods conveyed from one country to another for the objective of transaction or sale.

Production Possibilities Frontier

A curve demonstrating the maximum feasible amount of two goods that can be produced with available resources and technology.