Use This Information to Answer the Following Question

question 112

Multiple Choice

Use this information to answer the following question.
-The total dollar amount of assets to be classified as investments is

• A)$168,000.
• B)$0.
• C)$112,000.
• D)$56,000.

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Definitions:

Cash Disbursements

Cash disbursements refer to the outflow of cash for expenses, including payments to suppliers, wages, and other operational costs.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products, based on an activity such as labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process.

Fixed Manufacturing Overhead

The costs associated with manufacturing that do not vary with the level of production output, including rent of the facility and salaries of the staff.