To Follow Is Information About the Units Produced and Total

question 17

Multiple Choice

To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months. Using the high-low method, what is the monthly fixed manufacturing cost? (Round any intermediary calculations to the nearest cent.)

• A)$3240
• B)$15,200
• C)$1800
• D)$5260

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Definitions:

Straight Line Pay

A compensation plan where employees are paid a fixed salary or wage that does not vary based on performance or sales.

Budget Target

A financial planning goal that aims to manage expenses within predefined limits.

Manager Punishes

The actions taken by a manager to discipline or correct an employee's behavior or performance.

Budget-gaming Problem

A situation in which employees attempt to manipulate or exploit the budgeting process for their own advantage, often at the expense of the company's goals.