Corrao Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

question 118

Multiple Choice

Corrao Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows:
$\begin{array}{ll}&\text { Per Unit }\\\text { Direct materials } & \$ 20.00 \\\text { Direct labor } & 13.00 \\\text { Variable factory overhead } & 15.00 \\\text { Fixed factory overhead } & \underline{14.00} \\\text { Total costs }&\$62.00\end{array}$
The fixed factory overhead costs are unavoidable.Assuming no other use for the facilities,what is the highest price that Corrao Company should be willing to pay for the part?

• A) $33
• B) $47
• C) $48
• D) $62

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