Round Company Currently Produces Cardboard Boxes in an Automated Process

question 116

Multiple Choice

Round Company currently produces cardboard boxes in an automated process.Expected production per month is 40,000 units.The required direct materials cost $0.30 per unit.Manufacturing fixed overhead costs are $24,000 per month.The cost driver for manufacturing fixed overhead costs is units of production.In a flexible budget at 20,000 units,the total fixed cost is ________ per month and the total variable cost is ________ per month.

• A)$24,000; $6,000
• B)$24,000; $12,000
• C)$12,000; $6,000
• D)$12,000; $12,000

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Definitions:

Cultural Capital

A term coined by sociologist Pierre Bourdieu referring to non-financial social assets, like education, intellect, style of speech, or dress, that can promote social mobility.

Economic Capital

Financial assets and resources that an individual or organization possesses, which can be used to generate wealth or facilitate production.

Pierre Bourdieu

A French sociologist and public intellectual who significantly contributed to the understanding of power dynamics in society through concepts like cultural capital.

Flynn Effect

The observed substantial and long-sustained increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.