Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My answers are bold and underlined, can you check my answers, please. ROK Tax Service is trying to determine the variable and fixed elements of

My answers are bold and underlined, can you check my answers, please.

ROK Tax Service is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity:

TOTAL SERVICE OVERHEAD

March: $22,900

April: $20,800

May: $26,800

CLIENTS SERVED

March: 112

April: 98

May: 138

Assuming 100 clients were served during the month, how much overhead would be incurred? my answer is 21,00

Which of the following statement regarding variable costs and fixed costs is FALSE?

Variable costs vary in total in direct proporation to the activity level whereas fixed costs remain constant regardless of the activity level.

Fixed costs remain constant on a per unit basis whereas variable costs change on a per unit basis. this is my answers.

Both fixed costs and variable costs are affected by the activity index.

Variable costs remain constant on a per unit basis where as fixed costs change on a per unit basis.

Which of the following statement regarding the Relevant Range is FALSE?

When using the relevant range, a straight-line relationship exists for both variable and fixed costs.

As long as the level of activity stays within the relevant range, the linear assumption produces useful date for CVP analysis.

In the real world, a straight-line relationship usually exists for variable costs.

By using the relevant range, it helps predict the manner in which variable costs will behave.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Routledge Companion To Accounting And Risk

Authors: Margaret Woods

1st Edition

1138860123, 9781138860124

More Books

Students also viewed these Accounting questions

Question

How do we achieve depth perception?

Answered: 1 week ago