Question

What are the wa t ering for jorder them e omal job ander O $191,500 500 O SE 95 Os que Ow ari qual Other Og O cture of ships O chen cabin an advertising from 15. Aussenger O direct labore O direct material Opcoes indirect 16. The number of bewa in the w ordt ending finished goods inventory levels

Answer 1

12) c) 79 units

Sales = $820,000

Variable cost = $250,000

Contribution = $820,000 - $250,000 = $570,000

Units =130

Fixed cost = $345,000

Break even point = fixed cost x units/total contribution

                          = $345,000 x 130/$570,000

                          =79 units approx

13) d) revenue equals the sum of variable cost and fixed cost

           Breakeven point is the point of no profit no loss

          Revenue-total cost = profit

           Revenue-total cost = 0

           Revenue = total cost

           Revenue = variable cost + fixed cost

14) a) an oil refining company

As there are many process involved in oil refining co., it must use process costing.

15) d) indirect cost

Acitivity Based Costing mainly records indirect costs as per the priority.