Question4

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 FIXED COSTS

Select one:

a.$1.22

b.$2,465,934

c.$0.58

d.$305,000

Question5

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 UNIT COST

Select one:

a.$1.22

b.$2,465,934

c.$0.58

d.$305,000