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A firm's quarterly income statement is as follows: Sales $ 4,800 Less Variable Expenses: Direct material $ 840 Direct labour 900 Factory Overhead 180 Administrative
A firm's quarterly income statement is as follows: Sales $ 4,800 Less Variable Expenses: Direct material $ 840 Direct labour 900 Factory Overhead 180 Administrative expenses 90 Selling expenses 210 $ 2,220 Contribution margin $ 2,580 Less Fixed Expenses: Factory Overhead $ 540 Administrative expenses 1,320 Selling expenses 300 $ 2,160 Profit Before Tax 420 1. Under absorption costing the total period cost is: A. $1,800 B. $2,640 C. $2,160 D. $1,920 2. Conversion costs are: A. $1,140 B. $1,740 C. $1,620 D. $1,860
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