Question

Bill Williams is an engine tech for a Ford dealership and is assigned to the services department. here is a tab

Fixed costs Costs that increase in direct relation to sales volume D. A Costs that essentially remain unchangad even when sales increase Semi-xed costs QUESTION 6 Bill Williams is an engine tech for a Ford dealership and is assigned to the service department. Here is a table of costs associated with the dealership and Bil's engine repair job today Engine parts Gasket, oll and other fuids $ 675 $ 113 S 700 $ 48 Standard Labor Costs Expensible tools Service Wite Up Wages Rado Advertsing Parking lot paving project Quality Inspection Dept S 1.366 S 850 S 9.850 S 5248 Which is of the following is not true? A The parking lot paving costs will be allocated to each vehicle repaired in the facility todey OB. The dealership ia most laly using job costing 0c Shared costs of $6.614 ware incured today QDirect costs on this job are S1,536.

Answer 1

Ausly 113 Table of costs auociated with to dealership Engine paats T 675 Garked, oil and other standard labay lasts 700 Expossible tools Seqvice white up abges 1366 Radio Advertising 850 parking lot paved x 48 9850 quality inspection I 5248 Depton d) Direct Costs are consist of Engine paility Gasket, oil and other fluids, standard labour costs and expensittle tools Diyect Cost = 675 +1st too +48 = $1536 poolest o pen

Shaped-cost is of quality inspection and service cogite up wages = $1366 #5248 336614 B) Dealership is most line using Jof costry accounting method as lest gecopped ng a spoustautuilly Jel imiteed ja praes A) This is incorgect as it is long tegu the Capital cast which will to charged over a long period not for one day A no 1993