Prater Corporation Manufactures and Sells a Single Product

question 96

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:

Noticing the Situation

The act of becoming aware of or paying attention to something in one's environment, often the first step in deciding how to react.

Interpreting the Situation

The process of understanding and making sense of an event or circumstances, often by analyzing available information and context.

Belief in a Just World

The assumption that the world is fair and people get what they deserve, influencing one’s response to injustices.

Authoritarianism

A governing system characterized by strong central power and limited political freedoms, often with enforced obedience to authority.