Prater Corporation Manufactures and Sells a Single Product

question 68

Multiple Choice

Prater Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During February, the company budgeted for 5, 400 units, but its actual level of activity was 5, 380 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The direct labor in the planning budget for February would be closest to:

• A)$17, 754
• B)$17, 820
• C)$18, 164
• D)$18, 232

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Definitions:

Staphylococcus

A genus of gram-positive bacteria, known for forming clusters resembling grapes, and can cause a variety of diseases in humans.

Propionibacterium

A genus of gram-positive bacteria associated with the production of propionic acid and found in dairy products and as part of human skin flora.

Ringworm

A fungal infection of the skin characterized by ring-shaped, red, itchy patches.

Fungus

A kingdom of spore-producing organisms feeding on organic matter, including molds, yeast, mushrooms, and toadstools.