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Please Help! Just a simple answer is ok. Which of the following costs at a sofa manufacturing company would be treated as a period cost

Please Help!

Just a simple answer is ok.

Which of the following costs at a sofa manufacturing company would be treated as a period cost under variable costing method?

Multiple Choice 5)

  • Depreciation on office equipment utilized in the Executive Offices of the companys headquarters.

  • The cost of glue used to assemble the wood frame of each sofa produced

  • Rent on the factory building

  • Rent on the factory building AND Depreciation on office equiment utilized in the company's headquarter's building

At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000, and Selling and Administrative expenses are fixed during the period for $15,000. Sales are 4,000 units at a sales price of $95 per unit. Calculate the Net Operating Income using Absorption Costing if production is 8,000 units.

Multiple Choice 6)

  • $5,000

  • $40,000

  • $25,000

  • $55,000

Select the correct statement below, as it relates to management choosing to use Variable costing or Absorption costing for decision-making.

Multiple Choice 7)

  • Variable costing would be most useful when determining product Sales Prices to cover all costs in the long-term.

  • Variable costing would be most useful when management is creating an external set of financial statements.

  • Absorption costing would be most useful for management to create cost reports for controlling cost purposes.

Calculate the number of units that need to be sold in order to earn a Target Profit of $150,000 using the information below:

Sales (20,000 units) $1,200,000

Variable Expenses $800,000

Fixed Expenses $320,000

Multiple Choice 10)

  • 23,500

  • 16,000

  • 7,500

  • 12,500

  • Variable costing would be most useful when analyzing contribution margins and variable cost structure changes.

Calculate the Net Operating Income for XLT Inc. using Variable Costing when 8,000 units are produced. At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000, and Selling and Administrative expenses are fixed during the period for $15,000. Sales are 4,000 units at a sales price of $95 per unit.

Multiple Choice 11)

  • $25,000

  • $15,000

  • $40,000

  • $5,000

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