[The Following Information Applies to the Questions Displayed Below

question 25

Multiple Choice

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:

-Alton Company produces metal belts.During the current month,the company incurred the following product costs: Raw materials $100,000;
Direct labor $75,000;
Electricity used in the Factory $25,000;
Factory foreperson salary $3,750;and
Maintenance of factory machinery $2,000.
Alton Company's total product costs:

• A)$175,000.
• B)$30,750.
• C)$205,750.
• D)$28,750.

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Definitions:

Shift of Supply

A change in the quantity of a good that suppliers are willing and able to sell in the market at any given price, often due to changes in production costs or technology.

Heating Oil

A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings. It is a major component in home heating solutions in colder regions.

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price over a given period of time.

Supply

The total amount of a product or service that is available to consumers at a given price level.