Gusler Corporation makes one product and has provided the following information: Budgeted sales, May 9,500unitsRaw materials requirement per unit of output 2poundsRaw materials cost$2.00per poundDirect labor requirement per unit of output 2.7direct labor-hoursDirect labor wage rate$20.00per direct labor-hourPredetermined overhead rate (all variable)$10.00per direct labor-hour?The estimated cost of goods sold for May is closest to:
A. $256,500
B. $646,000
C. $807,500
D. $551,000
Answer: C
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a. The sales price is greater than the book value and less than the residual value. b. The sales price is greater than the book value and greater than the residual value. c. The sales price is less than both the book value and the residual value. d. The sales price is greater than the residual value but less than the book value.
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Indicate whether the statement is true or false.