Based on a Predicted Level of Production and Sales of 22,000

question 100

Multiple Choice

Based on a predicted level of production and sales of 22,000 units,a company anticipates total variable costs of $99,000,fixed costs of $30,000,and operating income of $36,000.Based on this information,the budgeted amount of fixed costs for 20,000 units would be:

• A)$99,000.
• B)$90,000.
• C)$66,000.
• D)$30,000.
• E)$150,000.

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Definitions:

Process Output

The final product, result, or service generated by completing a specific process.

R-chart

A type of control chart used to monitor the range within a sample to evaluate the variability of a process.

Control Chart

A graph used in process control to study how a process changes over time, displaying data in time order to detect any signs of significant variation.

Control Limits

Statistical boundaries in processes control that identify the extent of allowable variation before corrective actions are taken.