Answer the Following Questions Using the Information Below

question 129

Multiple Choice

Answer the following questions using the information below:
For Echuca Company,labour-hours are 50 000 and wages $188 000 at the high point of the relevant range,and labour-hours are 30 000 and wages $140 000 at the low point of the relevant range.
-What is the estimate of total labour costs at Echuca Company when 40 000 labour-hours are used?

• A)$208 000
• B)$164 000
• C)$68 000
• D)$184 668

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Definitions:

Accounts Payable

Amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Inventory

Refers to the goods and materials that a business holds for the ultimate goal of resale.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.