Use the Following Data to Compute Total Manufacturing Costs for the Month

question 31

Multiple Choice

Use the following data to compute total manufacturing costs for the month: $\begin{array}{lr}\text { Sales commissions } & \$ 10,800 \\\text { Direct labor } & 39,600 \\\text { Indirect materials } & 15,200 \\\text { Factory manager salaries } & 7,200 \\\text { Factory supplies } & 9,000 \\\text { Indirect labor } & 6,300 \\\text { Depreciation-office equipment } & 5,000 \\\text { Direct materials } & 40,500 \\\text { Corporate office salaries } & 42,500 \\\text { Depreciation-factory equipment } & 7,500\end{array}$

• A) $141,100.
• B) $125,300.
• C) $45,200.
• D) $84,800.
• E) $58,300.

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Definitions:

Price Decreases

A situation where the cost of goods or services lowers over time, often leading to increased consumer purchasing power.

Budget Constraint

The limitations on the purchase of goods and services imposed by a budget, representing the combination of goods and services that a consumer can afford with a fixed income.

Giffen Good

A type of good for which demand increases as its price increases, contradicting the basic laws of demand in economics due to the impact of strong income effects.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.