Tulip Midwifery's Cost Formula for Its Wages and Salaries Is

question 106

Multiple Choice

Tulip Midwifery's cost formula for its wages and salaries is $2,420 per month plus $388 per birth. For the month of January, the company planned for activity of 119 births, but the actual level of activity was 123 births. The actual wages and salaries for the month was $50,540. The wages and salaries in the flexible budget for January would be closest to:

• A)$50,540
• B)$48,592
• C)$50,144
• D)$50,225

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Definitions:

User Cost

The expense of utilizing a good or service, including opportunity costs and depreciation.

Slippery Slope

A logical fallacy that argues a relatively small first step leads to a chain of related events culminating in some significant effect, often used as a form of argument to caution against a course of action.

Extracting

The act of removing or obtaining a resource from a source, often used in the context of mining, harvesting, or obtaining information from data.

Barrel

A unit of measurement for oil and petroleum products, equivalent to 42 U.S. gallons.