The Footy Company Currently Produces Sandals in an Automated Process

question 66

Multiple Choice

The Footy Company currently produces sandals in an automated process.Expected production per month is 20,000 units.The required direct materials cost is $1.50 per unit.Fixed overhead costs are $30,000 per month.The cost driver is units of production.What is the expected manufacturing cost of 15,000 units for one month?

• A)$22,500
• B)$45,000
• C)$52,500
• D)$88,000

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.

Normal Distribution

A statistical distribution that is symmetrically shaped around its mean, depicting how probabilities are spread over different events or values.

Bell-shaped Distribution

A graphical representation of data where the peak of the curve represents the most common occurrence, tapering off symmetrically on both sides, typical of a normal distribution.

Normal Curve

Also known as the bell curve, it is a graphical representation of a normal distribution of data where most observations cluster around the central peak and taper off symmetrically towards either end.