2.United Banking Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 32,000 units, the lease cost was $716,800. To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.) A.$692,160 B.$704,480 C.$716,800 D.$742,317
2.United Banking Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 32,000 units, the lease cost was $716,800. To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.) A.$692,160 B.$704,480 C.$716,800 D.$742,317
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.United Banking Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 32,000 units, the lease cost was $716,800. To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.)
A.$692,160
B.$704,480
C.$716,800
D.$742,317
3.Unigloo Corporation uses a predetermined
to apply manufacturing overhead to jobs. The Corporation has provided the following
estimated costs for the next year:
Direct materials $5,000
Direct labour $19,000
Rent on factory building $16,000
Sales salaries $24,000
corporate office printers $13,000
Depreciation on factory machinery $7,000
Indirect materials $11,000
Indirect labour $14,000
Unigloo estimates that 12,000 direct labour hours will be worked during the year. The predetermined overhead rate per hour will be _____________.
A.$4.00
B.$5.58
C.$6.00
D.$8.00
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