Econo Company
in July, Econo Company Purchased Materials Costing $21,000

question 47

Multiple Choice

Econo Company
In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Manufacturing overhead totalled $32,000 for the month. Information on inventories was as follows: $\begin{array}{lrr}&\text { July } 1& \text { July } 31\\\text { Materials } & \$ 6,200 & \$ 7,100 \\\text { Work-in-process } & \$ 700 & \$ 1,200 \\\text { Finished goods } & \$ 3,300 & \$ 2,700\end{array}$
-Refer to Quest Company. What was the gross margin per unit?

• A) $7
• B) $30
• C) $95
• D) $125

Determine the fixed and variable components of costs using a flexible budget.

Identify and understand the limitations and advantages of a standard costing system.

Calculate budgeted, actual, and standard costs for direct and indirect labor.

Analyze the impact of production volume changes on costs.

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