A manufacturing company prepays its insurance coverage for a three-year period; The premium for the three years is $4,770 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative actiVities. What amounts should be conSidered product and period costs respectively for the first year of coverage? Product Period A) $ 477 $ 1,113 B) $ 1,593 5 a C) $ 3 $ 1,593 D) $ 1,113 $ 477 Multiple Choice O ChoiceA 0 Choice B 0 Choice C 2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense lfthe selling price is $27.30 per unit, the contribution margin per unit sold is closest to: Multiple Choice 0 O O 0 $12.65 $7. 40 $15.90 $1 0. 50 Cost per Unit $ $ $ $ $ 7.10 4.30 1.60 1.20 0.45 Cost per Period $ 23,600 $ 0,000 Cost per Unit Cost per Period 3 Direct materials $ 6.60 Direct labor $ 3.30 Variable manufacturing overhead $ 1. 10 Fixed manufacturing overhead $ 109, 250 Sales commissions $ 1. 05 Variable administrative expense $ 0. 40 Fixed selling and administrative expense $ 38, 950 The incremental manufacturing cost that the company will incur if it increases production from 9,500 to 9,501 units is closest to (assume that the increase is within the relevant range): Multiple Choice O $24.00 O $11.00 O $28.05 O $22.50Corporate headquarters building lease $ 78,300 Cosmetics Department sales commissionsNorthridge Store 515 5,350 Corporate legal office salaries $ 60,200 Store manager's salary-Northridge Store $ 19,500 Heating-Northridge Store $ 17,200 Cosmetics Department cost of sales-Northridge Store $ 33,100 Central warehouse lease cost $ 14,000 Store securityNorthridge Store $ 18,200 Cosmetics Department manager's salary-Northridge Store $ 4,420 The Northridge Store is just one of many stores owned and operated by the company; The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores; What is the total amount ofthe costs listed above that are direct costs of the Cosmetics Department? Multiple Choice 0 $98,270 (::) $43a70 0 $38,950 {/'\\ majnnn Average Cost per Unit Direct materials $ 6.60 Direct labor $ 3.60 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 3.30 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.65 Sales commissions $ 0.75 Variable administrative expense $ 0.65 For financwai reporting purposes, the total amount of product casts incurred to make 6,000 units is closest to: Multiple Choice 0 339.100 $59300 O 0 $95,100 0 $9300 Cost per Cost per Unit Period 6 Direct materials $ 7.55 Direct labor $ 3. 30 Variable manufacturing overhead $ 1.95 Fixed manufacturing overhead $ 19, 000 Sales commissions $ 1. 00 Variable administrative expense $ 0.80 Fixed selling and administrative expense $ 5, 900 If 9,000 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice O $35,550 O $36,550 O $34,550 O $48,250Cost per Cost per 7 Unit Period Direct materials $ 6. 45 Direct labor $ 3.30 Variable manufacturing overhead $ 1. 25 Fixed manufacturing overhead $ 16, 500 Sales commissions $ 0. 45 Variable administrative expense $ 0. 50 Fixed selling and administrative expense $ 4, 200 If 5,000 units are sold, the total variable cost is closest to: Multiple Choice O $67,500 O $82,000 O $59,750 O $55,0008 At a sales volume of41.000 units' Choice Corporation's sales commissions [a cost that is variable with respect to sales volume) total $561,700. To the nearest whole dollar. what should be the total sales commissmns at a sales volume of 38.800 units? (Assume that this sales volume is within the relevant ranges) (Round intermediate calculations to 2 decimal places.) Multiple Choice 0 $546,630 $561700 $593549 0 0 $531,560 0 Average Cost per Unit Direct materials $ 5.30 Direct labor $ 5.60 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 11.00 Fixed selling expense 3 3.90 Fixed administrative expense $ 1.70 Sales commissions $ 0.50 Variable administrative expense $ 0.45 lfthe selling price is $29.00 per unit. the contribution margin per unit sold is closest to: Multiple Choice 0 $'l5.80 ($0.80) $18.10 0 0 $5.75 0 Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $498,000 or a new model 220 machine costing 10 $469,000 to replace a machine that was purchased 6 years ago for $453,000. The old machine was used to make product 143L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product 143L. Management also considered, but rejected, the alternative of simply dropping product 143L. If that were done, instead of investing $469,000 in the new machine, the money could be invested in a project that would return a total of $478,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was: Multiple Choice O $453,000 O $469,000 O $498,000 O $478,000