Flat Company Currently Produces Cardboard Boxes in an Automated Process

question 94

Multiple Choice

Flat 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 static budget at 40,000 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:

Restaurant-Quality

A term used to describe food products or meals that meet the high quality and taste standards typically expected in eateries.

Persuasive

Intended to convince or influence someone to undertake a specific action or adopt a certain belief.

Pioneering

The act of being among the first to explore or introduce a new area, activity, or innovation.

Product Advertisements

Promotional messages aimed at informing, persuading, or reminding consumers about the benefits or existence of specific products.