Gusler corporation makes one product and has provided the following information:

budgeted sales, may 9,500 units
raw materials requirement per unit of output 2 pounds
raw materials cost $ 2.00 per pound
direct labor requirement per unit of output 2.7 direct labor-hours
direct labor wage rate $ 20.00 per direct labor-hour
predetermined overhead rate (all variable) $ 10.00 per direct labor-hour
the estimated cost of goods sold for may is closest to:

multiple choice

$646,000

$807,500

$256,500

$551,000

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan