1. The accounting staff salary is 40,000, advertisement cost is 30,000. Direct material cost is 10,000 and direct labor hours is 2,000 and machine hours is 3,000. What is the ABC overhead rate? Show your work.

2. Selling price of car is $10,000 and variable cost is $7,000. It uses 800 kg of steel which is in short supply. Selling price of truck is $18,000 and variable cost is $13,000. It uses 1500 kg of steel which is in short supply. Determine which vehicle you will produce supporting it with calculations.

3. If sales drops by 80%, explain how all costs change?

Your answer

4. At 3000 units, total cost is 15,000. At 5,000 units, total cost is 21,000. Find the fixed cost and variable cost per unit and state it as an equation Y = A + BX

Your answer