A Department's Budgeted Output for a 4-Week Period Was 500

question 32

Multiple Choice

A department's budgeted output for a 4-week period was 500 units at a standard cost of $100 per unit.The actual production was 450 units and the firm's ledger revealed actual costs for the month to be $50 200.The standard production cost for the period is:

• A) $50 000
• B) $50 200
• C) $45 000
• D) Insufficient information to determine

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Definitions:

Baker's Wages

Refers to the compensation paid to bakery workers for their labor, considered as direct labor costs in production.

Product Costs

All costs incurred to acquire or manufacture a product, including direct materials, direct labor, and manufacturing overhead expenses.

Period Costs

Expenses that are not directly tied to the production of goods, such as sales and marketing expenses, which are expensed in the period they are incurred.

Factory Building Utilities

Expenses related to utilities within a factory building, including costs for electricity, gas, water, and sewage.