Total Costs Are $80 000 When 8000 Units Are Made

question 84

Multiple Choice

Total costs are $80 000 when 8000 units are made. Of this amount, variable costs are $48 000. What are the total costs when 10 000 units are produced?

• A) $ 92 000
• B) $ 98 000
• C) $100 000
• D) $108 000

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Definitions:

Performance Rating

An evaluation of an individual's or machine's work output against a set standard.

Normal Time

The average time that should be taken to complete a task or process under normal working conditions.

Standard Time

The established time allowed for the completion of a specific job, based on measurements and assessments of work processes.

Variable Allowance

In budgeting and cost accounting, it refers to an amount set aside that can change based on the performance or needs of a business.