Question

Idbor. B) Unspecified labor. C) Indirect labor. D) Basic labor. E) Joint labor. 13) Last year, Gordon Company sold 20.000 units of its only product. If sales increase by 20% in the current year, how will unit variable cost and total fixed cost be affected? Unit Variable Cost A) Remains constant B) Increases C) Decreases D) Remains constant E) Remains constant Total Fixed Cost Remains constant Decreases Remains constant Decreases Increases C) Choice B E) Choice D D) Choice E B) Choice A A) Choice C 14) Which one of the following items is normally not a manufacturing cost? A) General and administrative expenses. B) Direct materials. C) Factory overhead. D) Direct labor. E) Conversion cost.

Answer 1

Question 13

Correct answer---------(E) Choice D.

Choice D that is Variable cost per unit remains same and fixed cost per unit decrease.

Fixed cost per unit decrease when sales increase because fixed cost in totality remains same and decrease when sales increase since.

Variable cost on per unit level remain constant.

Question 14

Correct answer---------(A) General and administrative expenses.

General and administrative expense are period cost and are not reported as manufacturing cost.