Use the Information Below to Answer the Following Question(s)

question 72

Multiple Choice

Use the information below to answer the following question(s) .Western Technologies Inc.produces dashboard displays.Actual fixed manufacturing overhead is the same as the budgeted amount, $687,500.Production in September increased by 10% over the previous month's production.August production was 25,000 displays.The production level is the same as the budgeted denominator level.At the end of September, 2,000 displays remained in stock.In August, all of the displays were sold by the end of the month and there was no remaining work in process inventory.
-What is the Western Technologies' September cost of goods sold amount if absorption costing is used?

• A)$668,380
• B)$726,500
• C)$632,500
• D)$687,500
• E)$637,500

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Definitions:

Levered Value

The value of a firm that includes the impact of borrowing on its overall valuation.

Cost of Equity

Cost of equity is the return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.

Debt-Equity Ratio

quantifies the proportion of a company's financing that comes from creditors and investors, showing the balance between debt (borrowed funds) and equity (shareholders' equity).

Targeted Cost

A cost management technique where a product's desired cost is set based on market conditions and desired profit, guiding design and production decisions.