Question
Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000; and Customer service salaries, $210,000. These costs were consumed
Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000; and Customer service salaries, $210,000. These costs were consumed by four activities as follows: Travel Deliveries Customer Service Other Total Vehicle operating expenses 45% 40% 10% 5% 100% Vehicle depreciation 40% 50% 0% 10% 100% Customer service salaries 20% 30% 35% 15% 100% How much of the companys total costs should not be allocated to customers when analyzing customer profitability? Multiple Choice $87,500 $42,000 $62,000 $62,500
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pt 2
Assume the following information for a company that produced and sold 10,000 units during its first year of operations:
Per Unit | Per Year | |
---|---|---|
Selling price | $ 200 | |
Direct materials | $ 67 | |
Direct labor | $ 50 | |
Variable manufacturing overhead | $ 10 | |
Fixed manufacturing overhead | $ 300,000 |
Using variable costing, what is the companys unit product cost?
Multiple Choice
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$127
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$147
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$117
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$157
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