BarGraphs Corp. had capacity to produce 4000 units of L3 using 40,000 kg of direct materials. BarGraphs produced 3850 units of L3 by processing 35,500 kg of direct materials. Conversion cost per unit is $7.00. BarGraphs can add or reduce manufacturing capacity in increments of 4500 kgs.
What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by 4500 kgs?
A) $3150
B) $700
C) $1050
D) $4500
Correct Answer:
Verified
Q124: Managers can reduce capacity-based fixed costs by
Q125: Engineered costs _.
A) possess a high level
Q126: BarGraphs Corp. had capacity to produce 12,000
Q127: It is relatively easy to identify unused
Q128: Discretionary costs arise from periodic (usually annual)
Q130: Engineered costs _.
A) have a no repetitive
Q131: Which of the following statements is a
Q132: The amount of productive capacity available over
Q133: Discretionary costs are not easily controllable compared
Q134: Which of the following statements is of
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