Use the Information Below to Answer the Following Question(s)

question 42

Multiple Choice

Use the information below to answer the following question(s) :
General Products Company manufactures toaster ovens and uses an activity-based costing system. The following information is provided for the month of May:

Each toaster oven consists of 3 parts. The direct materials cost per toaster oven is $25.00.
-What is the total manufacturing cost per toaster oven?

• A) $42.50
• B) $17.50
• C) $15.00
• D) $40.00

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Definitions:

Demand Shifts

Occur when external factors lead to a change in the amount of a product or service that consumers are willing and able to buy at a given price, resulting in the demand curve moving rightward or leftward.

New Equilibrium

The point at which market supply and demand balance each other, and, as a result, prices become stable following a disturbance.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, reaching a state of balance where there are no surplus or shortage.