Suppose that in the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie
1 answer:
Answer:
The correct answer is option B.
Explanation:
In the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each.
In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.
The price index
=
=
= 106.38 or 106.4
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Answer:
Explanation:
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Total Product Cost = ($70,000 + $35,500 + $43,700) ÷ 1,000 = $149.20
Total Period Cost = $30,600 + $29,300 = $59,900
Total Direct Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,900
Total Indirect Manufacturing Cost = $28,300
Total Manufacturing Cost = $70,000 + $35,500 + $43,700 = $149,200
Total Non Manufacturing Cost = $30,600 + $29,300 = $59,900
Total Conversion Cost = $35,500 + $43,700 = $79,200
Total Prime Cost = $70,000 + $35,500 = $105,500
Total Variable Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,000
Total Fixed Costs = $25,200 + $18,400 + $28,300 = $71,900
Variable Cost per unit = ($70,000 + $35,500 + $15,400 + $12,200 + $4,100) ÷ 1000 = $137.20
Incremental manufacturing cost = ($70,000 + $35,500 + $15,400) ÷ 1,000 = $120.90
