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ChesterNeupt ChesterNeupt
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5 years ago
Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows:

Direct materials$86,000
Direct labor130,000
Variable factory overhead57,000
Fixed factory overhead135,000
Total costs$408,000

Of the fixed factory overhead costs, $58,000 is avoidable.

Assuming no other use of their facilities, the highest price that McMurphy should be willing to pay for 12,000 units of the part is ________.
A) $408,000
B) $273,000
C) $331,000
D) $351,000
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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anonymous661anonymous661
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5 years ago
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ChesterNeupt Author
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#2
5 years ago
I'm still confused, but thanks for answering correctly
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