Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data apply to the provision pf psychological testing services: Sales price per unit (1 unit = 1 test + feedback to client) $1,000

The following data apply to the provision pf psychological testing services:

Sales price per unit (1 unit = 1 test + feedback to client) $1,000

Fixed costs (per month):

Selling and administration 80,000

Production overhead (e.g. rent of testing facilities) ..140,000

Variable costs (per test):

Labor for oversight and feedback 300

Outsourced test analysis 50

Materials used in testing 10

Production overhead 25

Selling and administration (e.g. scheduling and billing) ... 50

Number of tests per month . 2,000

If one unit is one test, give the amount of full cost per unit:

Group of answer choices

$632/test.

$545/test.

$782/test.

There is not enough information to answer this question.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

9th Canadian Edition, Volume 2

470964731, 978-0470964736, 978-0470161012

Students also viewed these Accounting questions