Question 1:

Aday Cookie Sheetsproduced 250,000 cookie sheets last year and incurred the following costs:

PRODUCTION:250,000TOTAL DIRECT MATERIALS$64,500LABOR COSTS$118,000INDIRECT MATERIALS$32,500ADMINISTRATIVE$40,000OTHER FIXED COST$50,000TOTAL COSTS:$305,000

The management has decided the following:

1.All of Direct Materials will be considered Variable Costs (VC)

2.70% of Labor Costs will be classified as VC and 30% as FC.

3.40% of Indirect Materials will be classified as VC and 60% as FC.

4.All of Administrative Costs and Other Fixed Costs will be considered as FC.

Using the above information, calculate:

TOTAL VARIABLE COSTS

Select one:

a.$1.22

b.$2,465,934

c.$160,100

d.$305,000

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Question2

Aday Cookie Sheetsproduced 250,000 cookie sheets last year and incurred the following costs:

PRODUCTION:250,000TOTALDIRECT MATERIALS$64,500LABOR COSTS$118,000INDIRECT MATERIALS$32,500ADMINISTRATIVE$40,000OTHER FIXED COST$50,000TOTAL COSTS:$305,000

The management has decided the following:

1.All of Direct Materials will be considered Variable Costs (VC)

2.70% of Labor Costs will be classified as VC and 30% as FC.

3.40% of Indirect Materials will be classified as VC and 60% as FC.

4.All of Administrative Costs and Other Fixed Costs will be considered as FC.

Using the above information, calculate:

TOTAL FIXED COSTS

Select one:

a.$1.22

b.$2,465,934

c.$144,900

d.$305,000

Question3

Aday Cookie Sheetsproduced 250,000 cookie sheets last year and incurred the following costs:

PRODUCTION:250,000TOTALDIRECT MATERIALS$64,500LABOR COSTS$118,000INDIRECT MATERIALS$32,500ADMINISTRATIVE$40,000OTHER FIXED COST$50,000TOTAL COSTS:$305,000

The management has decided the following:

1.All of Direct Materials will be considered Variable Costs (VC)

2.70% of Labor Costs will be classified as VC and 30% as FC.

3.40% of Indirect Materials will be classified as VC and 60% as FC.

4.All of Administrative Costs and Other Fixed Costs will be considered as FC.

Using the above information, calculate:

UNIT VARIABLE COSTS

Select one:

a.$1.22

b.$2,465,934

c.$0.64

d.$305,000