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

question 50

Multiple Choice

Use the information below to answer the following question(s) .
Lucas Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July:


-What is the total cost for the customer service category of the value chain at Lucas Family Orange Groves?

• A) $14,000
• B) $18,000
• C) $45,000
• D) $4,000

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not change with the level of production, such as salaries of supervisors and factory rent.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for manufacturing.

Standard Cost System

A cost accounting system that uses standard costs for inventory valuation and cost control, comparing actual costs to standard costs to assess performance.

Direct Labor Costs

The wages paid to workers directly involved in the manufacturing of products or the provision of services.