QUESTION 25

A company has monthly fixed costs of $96,000. The variable costs are $8.00 per unit. If the sales price of a unit is $14.00 and we sell 8000 units, the company's total variable costs will be

$96,000.

$64,000.

$48.

$112,000.

QUESTION 27

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers	$60,700
Fabric used to upholster furniture	$80,500
Wages paid to assembly-line workers	$100,200
Lumber used to build product	$15,100
Sales commissions	$7700
Insurance costs for factory	$21,900
Freight-in (on raw materials)	$3900
Utilities in factory	$12,400
Factory supervisor salary	$60,100
Depreciation on factory equipment	$18,200
Utilities in sales office	$26,400
Costs of delivery to customers	$8500
Depreciation on sales office	$1700
Lubricants used in factory equipment	$500

Direct material costs for Rustic Living Furniture Company totaled

		$80,500.
		$95,600.
		$15,100.
		$99,500.