Lemaire Products Reports the Following Information About Resources

question 78

Multiple Choice

Lemaire Products reports the following information about resources.At the beginning of the year,Lemaire estimated it would spend $8,000 for energy and $12,000 for repairs. Compute unused resource capacity for repairs for Lemaire Products.

• A)$2,400.
• B)$12,000.
• C)$6,000.
• D)$3,600.

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Definitions:

Materials

The raw inputs or components used in the manufacturing or production process to create goods or products.

First Processing Department

The initial stage in a manufacturing process where raw materials are prepared or initial work is done.

Conversion Costs

Costs incurred in the process of converting raw materials into finished goods, including labor and overhead expenses.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed units of product, making them comparable to fully completed units.