Cost A Cost B Cost C Total Costs 60,000 units $75,000 $120,000 $65,000 $260,000 90,000 units...

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Question

Cost A Cost B Cost C Total Costs 60,000 units $75,000 $120,000 $65,000 $260,000 90,000 units $75,000 $180,000 $80,000 $335,00

Total fixed costs for Taylor Incorporated are $270,000. Total costs, including both fixed and variable, are $400,000 if 151,0

Which of the following would be considered a discretionary fixed cost? O A. Employees wages O B. Advertising OC. Property tax

Under variable costing, fixed manufacturing overhead is expensed immediately as a period cost. True False

Schrute Farm Sales buys portable generators for $490 and sells them for $760 He pays a sales commission of 5% of sales revenu Doggie Pals produces 80,000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths.

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Answer 1

Answer #1

$180,000 - $120,000 / (90,000 - 60,000) = $2

Cost be change in same proportion as units produced changes.

Cost B is a variable cost.

Option D.

Variable cost per unit = ($400,000 - $270,000) / 151,000 = $0.86 per unit

Option D

Advertising expense is a discretionary fixed cost.

Option B.

Under variable costing, Fixed manufacturing overhead costs are treated as period costs.

True.

Net operating income = {[($760 - 5%) - $490] X 200} - $6,000 - $1,700 = $38,700

4th option.

Fixed cost = $220,000 - $130,000 = $90,000

Variable cost per unit = $130,000 / 80,000 = $1.63

Total cost = (145,000 X $1.63) + $90,000 = $326,350

Option B.

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Answer 2

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Cost A Cost B Cost C Total Costs 60,000 units $75,000 $120,000 $65,000 $260,000 90,000 units...

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