The Following Information Relates to Carried Away Hot Air Balloons,Inc

question 98

Multiple Choice

The following information relates to Carried Away Hot Air Balloons,Inc.: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 10,400 \\\hline \text { Sales Salary } & 13,800 \\\hline \text { Sales Revenue } & 630,000 \\\hline \text { President's Salary } & 52,000 \\\hline \text { Office Rent } & 67,000 \\\hline \text { Manufacturing Equipment Depreciation } & 3000 \\\hline \text { Indirect Materials Used } & 660 \\\hline \text { Indirect Labor } & 13,300 \\\hline \text { Factory Repair and Maintenance } & 820 \\\hline \text { Direct Materials Used } & 31,070 \\\hline \text { Direct Labor } & 31,900 \\\hline \text { Delivery Vehicle Depreciation } & 810 \\\hline \text { Administrative Salaries } & 24,700 \\\hline\end{array}$$ How much was Carried Away's manufacturing overhead?

• A) $19,900
• B) $20,720
• C) $23,720
• D) $62,970

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Definitions:

Foreign Competition

The presence and impact of competitors from other countries in a domestic market, often influencing prices, market shares, and industry standards.

Oligopolistic Market

A market structure characterized by a small number of large firms that dominate the market, often leading to strategic interactions and considerations regarding pricing and production.

Allocative Efficiency

A state of resource distribution where it is impossible to make any one individual better off without making someone else worse off, maximizing societal welfare.

Product Homogeneity

The degree to which products are identical or undifferentiated from each other in the eyes of the consumer.