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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Definitions:

Proton Spin Decoupled

A technique in NMR spectroscopy where the interaction between proton spins is removed, simplifying the spectrum.

1,3-Dichlorobenzene

An organic compound that consists of a benzene ring with two chlorine atoms attached at the 1st and 3rd positions.

Proton Spin Decoupled

This term relates to a nuclear magnetic resonance (NMR) spectroscopy technique where the interactions between proton spins are removed to simplify the spectrum.

1,4-Dibromobenzene

An organic compound where two bromine atoms are bonded to a benzene ring, positioned opposite from each other.