Refer to the Pacific Power illustration. Which resource costs depicted in Exhibit 5-7 could have variable cost
Question:
Refer to the Pacific Power illustration. Which resource costs depicted in Exhibit 5-7 could have variable cost behaviour?
Exhibit 5.7
Transcribed Image Text:
Current Costing Based on One Overall Rate Total Indirect Cost: $565,340 Computer $178,000 Paper $7,320 Ocupancy $47,000 Supervisors $33,600 Telecommunications $58,520 Printing Machines $5,000 Account Inquiry Labour $118,400 Billing Labour $87,500 # Inquiries = 23,000 18,000 (78%) 5,000 (22%) Residential Accounts ($442,440) Commercial Accounts ($122,900)
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A fixedcost resource is a resource with costs that do not change wit...View the full answer
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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