Action Company's Standard Cost Is $600,000 $$\begin{array} { l l } \text { April } & \$ 520,000 \\\text { May } & \$ 550,000 \\\text { June } & \$ 575,000\end{array}$$

question 58

Multiple Choice

Action Company's standard cost is $600,000.The allowable deviation is ±10%.Its actual costs for three months are as follows: $$\begin{array} { l l } \text { April } & \$ 520,000 \\\text { May } & \$ 550,000 \\\text { June } & \$ 575,000\end{array}$$ What are the upper and lower control limits,respectively?

• A) $660,000 and $600,000
• B) $660,000 and $540,000
• C) $640,000 and $500,000
• D) $575,000 and $520,000

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Definitions:

Lactic Acid

A substance produced in the muscles during intense exercise, often associated with muscle fatigue and soreness.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Glycolysis

A metabolic process that breaks down glucose to produce energy, happening in the cytoplasm of cells.

Hydrolysis

A chemical reaction in which water is used to break bonds in molecules, such as the digestion of nutrients.