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

question 97

Multiple Choice

Use the information below to answer the following question(s) .Ferryman Products manufactures coffee tables.Ferryman Products has a policy of adding a 20% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

-What is the Ferryman Products full product cost for long-run pricing purposes?

• A)$134.75
• B)$242.25
• C)$262.25
• D)$122.75
• E)$222.25

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Definitions:

Number of Batches

The total count of groups or sets of items processed or produced together in a manufacturing or production process.

Total Overhead Cost

The combined indirect costs associated with the normal operations of a business, such as administrative expenses, depreciation, and utilities.

Activity-Based Costing

Activity-based costing is an accounting methodology that assigns costs to products or services based on the activities and resources required to produce them, enhancing cost accuracy.

Product Margin

The profit made from selling a product, calculated by subtracting the cost of manufacturing and selling that product from its sale price.