Total variable selling and administrative expense
($1.40 per unit × 5,000 units sold)
$
7,000
Total fixed selling and administrative expense
5,500
Total period (nonmanufacturing) cost
$
12,500
Difficulty: 1 Easy
Topic: Cost Classifications for Preparing Financial Statements; Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-03 Understand cost classifications used to prepare financial statements: product costs and period costs.; 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
166) Schwiesow Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 4,000 units are sold, the variable cost per unit sold is closest to:
A) $13.60
B) $12.20
C) $14.40
D) $16.90
Answer: A
Explanation:
Direct materials
$
7.05
Direct labor
3.50
Variable manufacturing overhead
1.65
Sales commissions
1.00
Variable administrative expense
0.40
Variable cost per unit sold
$
13.60
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
167) Schwiesow Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 4,000 units are sold, the total variable cost is closest to:
A) $54,400
B) $48,800
C) $57,600
D) $67,600
Answer: A
Explanation:
Direct materials
$
7.05
Direct labor
3.50
Variable manufacturing overhead
1.65
Sales commissions
1.00
Variable administrative expense
0.40
Variable cost per unit sold
$
13.60
Variable cost per unit sold (a)
$
13.60
Number of units sold (b)
4,000
Total variable costs (a) × (b)
$
54,400
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
168) Schwiesow Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00