QUESTION 13 Which per unit cost does the slope of the total cost line re O Fixed

Question

QUESTION 13 Which per unit cost does the slope of the total cost line re O Fixed O Variable. O Semivariable O Step-variable QUESTION 14 The monthly high and iow levels of direct labor hours and of total manufacturing overhead for Onyx Company are as shown: Direct Labor Mfg Highest observed level Lowest observed level Hours 8.000 4.000 Overhead $34.000 $26,000 6.corke sngowehead hould be aproxdmatelr in a month in which 6,500 direct labor hours are worked Onyxts manufacturing overhead should be approximatey $18.000. $28,000. $31.000 $35.000. QUESTION 15

Explanation / Answer

Answer 13 - Option B is correct i.e variable Since the total cost changes due to change in the variable cost.

Answer 14 -

Variable rate = ( 34000 - 26000 ) / ( 8000 - 4000 ) = 8000 / 4000 = $ 2 per Direct labour hour

Fixed portion = 34000 - ( 8000 * 2 ) = $ 18000

Required answer :-

( 6500 * 2 ) + 18000 =

$ 31000

Option c is correct.

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