Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Wantu Hotel, a luxurious hospitality establishment, sold 145,000 rooms in a given year. The management of Wantu incurred the following cost data: Direct Materials

The Wantu Hotel, a luxurious hospitality establishment, sold 145,000 rooms in a given year. The management of Wantu incurred the following cost data:

Direct Materials $80,000 Labor $120,000 Indirect Materials $40,000 Administrative $40,000 Other Fixed Costs $30,000 TOTAL $310,000

Based on the cost structure, the management of Wantu has set next years cost structure as follows:

- All of direct materials will be considered as VC. - 80.00% of labor costs will be classified as VC and 20.00% as FC. - 40.00% of indirect materials will be classified as FC and 60.00% as VC. - All of administrative costs and other fixed costs will be considered as FC.

According to the cost projection for the next year, calculate Total Variable Costs (VC), Total Fixed Costs (FC), Unit Variable Cost (UVC). Unit Fixed Cost (UFC), and Unit Mixed Cost (UMC) respectively.

Group of answer choices

$190,000 VC, $185,000 FC, $1.44 UVC, $0.88 UFC, and $2.36 UMC

$200,000 VC, $110,000 FC, $1.38 UVC, $0.76 UFC, and $2.14 UMC

$222,000 VC, $130,000 FC, $1.54 UVC, $1.16 UFC, and $2.48 UMC

$240,000 VC, $177,000 FC, $1.12 UVC, $0.92 UFC, and $2.55 UMC

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

The Design Implementation And Audit Of Occupational Health And Safety Management Systems

Authors: Ron C. McKinnon

1st Edition

1032571039, 978-1032571034

More Books

Students also viewed these Accounting questions