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

question 106

Multiple Choice

Use the information below to answer the following question(s) .Data Source Media manufactures cassettes and CDs in separate divisions utilizing one plant location.The following data have been prepared for review.
-What is the total cost per hour of use for the CD Division assuming the budgeted rate is used for variable costs and practical capacity is the allocation base for fixed costs?

• A)$315.79
• B)$950.00
• C)$924.00
• D)$960.00
• E)$360.00

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Definitions:

Cash Payments

Transactions that involve the outflow of cash to settle obligations or purchase goods and services.

Cost of Merchandise Sold

The total cost of goods that have been sold during a specific period, including purchase price, transportation, and handling charges, less any discounts or allowances.

Cash Payment

The act of settling a debt or paying for goods or services with cash or equivalent instruments, such as checks.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from operating activities is used instead of adjustments to net income.