Homework Answers
When the sales volume increases, then the expenses which are related to the sales would increase.
So, to answer this question we are assuming that the sales commission is given to the salesman on the number of product sold. Hence it can be considered the variable cost related to sales.
Also, the material cost and the labour cost, since these are prime cost, so they will increase when the sales volume will increase, because to meet the high sales requiremet, we need to have more production which will increase their cost.
Also the depriciation, factory rent, sales office rent and sales staff salaries will remain as it is and will not change, since these are fixed cost in nature and does not have a connection with sales.
Hence, the answer to this question is option D.
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13. X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production...
X Company’s cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment,...
X Company’s cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company’s selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company’s total COGS and total SG&A costs: Group of answer choices COGS = increase by 15%; SG&A = increase by 15% COGS = increase by...
X Company’s cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment,...
X Company’s cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company’s selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company’s total COGS and total SG&A costs: Group of answer choices COGS = increase by 15%; SG&A = increase by 15% COGS = increase by...
please show work/give explaination 13. X Company's cost of goods sold (COGS) includes direct materials, direct...
please show work/give explaination
13. X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's costs: total COGS total SG&A costs A increase by 15% no change B n o change increase by 15%...
need some help. thank you Question 9 2.5 pts X Company's cost of goods sold (COGS)...
need some help. thank you
Question 9 2.5 pts X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's total COGS and total SG&A costs: not enough information O COGS = increase by 15%;...
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1. A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative...
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Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $ 8.00 Direct...
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1. in December 2018, Mentor Company's management team estimated next year's total direct labor cost assuming...
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determine period or product cost if a product cost which type direct labor, direct materials, or...
determine period or product cost
if
a product cost which type direct labor, direct materials, or
factory overhead
Commissions to sales representatives Period Cost Payroll department salaries Select One Maintenance of factory equipment Select One VP of Manufacturing salary Select One Accounting department office supplies Select One Factory rent Select One Factory utilities Select One Wages of assembly line workers Select One Factory janitorial services Select One Factory supplies Select One Leather for bicycle seats Select One Depreciation of office...
Sales $76,500 Direct materials used Depreciation on factory equipment 7,300 4,700 Indirect labor 5,900 10,500 4,200...
Sales $76,500 Direct materials used Depreciation on factory equipment 7,300 4,700 Indirect labor 5,900 10,500 4,200 1,200 Direct labor Factory rent Factory utilities Sales salaries expense Office salaries expense Indirect materials Product costs are 15,600 8,900 1,200 Oa. $29,200 Ob. $24,500 Oc. $35,000 Od. $30,300
please show work/give explaination
13. X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's costs: total COGS total SG&A costs A increase by 15% no change B n o change increase by 15%...
need some help. thank you
Question 9 2.5 pts X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's total COGS and total SG&A costs: not enough information O COGS = increase by 15%;...
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Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $ 8.00 Direct labor 3.00 Factory overhead $ 200,000 1.50 Selling expenses: Advertising 1,450,000 Sales salaries and commissions 93,000 1.85 Travel 340,000 Miscellaneous selling expense 2,000 Administrative expenses: Office and officers' salaries 300,000 10,000 Supplies 0.50 Miscellaneous administrative expense 5,000 0.05 Total $2,400,000 $15.00 It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within the relevant range are...
1. in December 2018, Mentor Company's management team estimated next year's total direct labor cost assuming 50 persons working an average of 2.000 hours each at an average hourly rate of $25. They also estimated the following cost for 2019: Classify the following cost as either: Direct Materials Overhead Period costs Indirect labor $320,000 Administrative office rent - $75,000 Sales expenses - $45,000 Administrative salaries $125,000 Factory supervision $250,000 Rent on factory building $150,000 Factory utilities $80,000 Factory insurance $70,000...
determine period or product cost
if
a product cost which type direct labor, direct materials, or
factory overhead
Commissions to sales representatives Period Cost Payroll department salaries Select One Maintenance of factory equipment Select One VP of Manufacturing salary Select One Accounting department office supplies Select One Factory rent Select One Factory utilities Select One Wages of assembly line workers Select One Factory janitorial services Select One Factory supplies Select One Leather for bicycle seats Select One Depreciation of office...
Sales $76,500 Direct materials used Depreciation on factory equipment 7,300 4,700 Indirect labor 5,900 10,500 4,200 1,200 Direct labor Factory rent Factory utilities Sales salaries expense Office salaries expense Indirect materials Product costs are 15,600 8,900 1,200 Oa. $29,200 Ob. $24,500 Oc. $35,000 Od. $30,300
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