Gundy Press Reports the Following Information About Resources

question 1

Multiple Choice

Gundy Press reports the following information about resources.At the beginning of the year,Gundy estimated it would spend $42,000 for setups and $21,000 for clerical. Compute unused resource capacity for clerical for Gundy Press.

• A)$5,000.
• B)$1,000.
• C)$6,000.
• D)$1,260.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are subtracted, used to cover fixed costs and generate profit.

Variable Administrative Expenses

Costs that change in proportion to the activity of a business.

Incremental Manufacturing Cost

The additional cost incurred to produce an additional unit of a product.

Production Increase

An increment in the amount of products manufactured by a company during a specified period.