Blacken Company Manufactures Motorcycles

question 101

Multiple Choice

Blacken Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected.

- Using a regression program, the forecasted utility cost at 2,300 machine hours (rounded to the nearest dollar) is

• A) $30,940.
• B) $37,116.
• C) $25,945.
• D) $10,631.

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Definitions:

Saving

The act of setting aside a portion of current income for future use, typically in a bank account, investments, or other forms of saving vehicles.

Consumption

The process of using up goods and services to satisfy human wants or needs.

Residential Construction

The building and development of living spaces for individuals and families, including houses, apartments, and other dwellings designed for habitation.

Durables

Products or goods with a long life span, such as cars, appliances, and furniture, as opposed to consumables that are used up quickly.