Jase Manufacturing Co

question 95

Multiple Choice

Jase Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $24,000. At 12,000 units of production, a flexible budget would show

• A)variable costs of $52,800 and $29,000 of fixed costs
• B)variable costs of $44,000 and $24,000 of fixed costs
• C)variable costs of $52,800 and $24,000 of fixed costs
• D)variable and fixed costs totaling $68,000

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory

The goods and materials a business holds for the purpose of resale, production, or repair.

Best-price Requirements

Regulatory or policy stipulations that ensure consumers or buyers are getting the most favorable price available for goods or services, often seen in government procurement.

U.S. Antitrust Law

Legislation aimed at promoting competition and preventing unfair monopolies or practices that could harm consumers or market fairness.