Product X having selling price of $50 can be produced by two processes A and B. Production capacities for the process A and Process B are 15000units and 10000units respectively. Variable cost per unit of $30 and total fixed cost of $80000 are incurred by using process A. Variable cost per unit of $35 and total fixed cost of $50000 are incurred by using process B. For anticipated sales of 7000 units:

Select one:

a. Both the processes will lead into losses

b. Process A is preferred over process B

c. Both the processes will have same earnings

d. Processes cannot be compared

e. Process B is preferred over process

A The total expected overhead costs of a manufacturing company are $200000. The company has 40000 budgeted direct labor hours for the year and has submitted a bid for a proposed job having estimated direct material of $36000 and direct labor of $20000. The estimated direct labor hours for the proposed job are 2000 hours. Cost of the proposed job is Select one:

a. $46000

b. $66000

c. $10000

d. $56000

e. Cannot be determined