Question 20

A business produces 100 units of a product and it has 12,000 fixed costs allocated to it. If the average cost is 150 per unit... what is the total variable cost?

A 15,000

B No answer is correct

C 3,000

D 12,000

Question 21

A job requires 70 kilograms of materials (costing 5 per kilogram), 7 direct labour hours (costing 12 per hour) and fixed overheads are allocated at 2 per direct labour hour.

What is the relevant cost of this job for decision-making purposes (employee wages are not avoidable)?

A 364

B 434

C 448

D 350