ABC Corporation's cost formula for electricity cost is Y=4,000 + 3X; based on machine hours. During the period, the company incurred 2,000 machine hours and 1,000 labor hours, compute the expected electricity cost assuming the relevant range is from 1,000 to 3,000 hours. A. 7,000 B. 10,000 C. 13,000 D. Cannot be determined E. None of the above
ABC Corporation's cost formula for electricity cost is Y=4,000 + 3X; based on machine hours. During the period, the company incurred 2,000 machine hours and 1,000 labor hours, compute the expected electricity cost assuming the relevant range is from 1,000 to 3,000 hours. A. 7,000 B. 10,000 C. 13,000 D. Cannot be determined E. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple choice. Choose the letter of the correct answer
1. ABC Corporation's cost formula for electricity cost is Y=4,000 + 3X; based on machine hours. During the period, the company incurred 2,000 machine hours and 1,000 labor hours, compute the expected electricity cost assuming the relevant range is from 1,000 to 3,000 hours.
A. 7,000
B. 10,000
C. 13,000
D. Cannot be determined
E. None of the above
2. Indirect materials used are 10,000 and indirect labor is 20,000. Purchases of materials are 100,000. Freight cost from delivery of goods from the company to its customer is 2,000. If raw material inventory decreased by 5,000 and the prime cost is 150,000 while overhead is applied at 200% of direct labor; compute the manufacturing cost .
A. 256,000
B. 260,000
C. 205,000
D. 203,000
E. None of the above
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