Based on the behavior shown in the following table, which of the following is a variable cost? Units Produced a. Cost Per Unit of Materials b. Cost Per Unit of Labor c. Total Utilities Cost 2 3 4 5 500 500 500 500 500 333 250 200 4,500 4,500 4,500 4,500 Multiple Choice Cost Per Unit of Materials Cost Per Unit of Labor Total Utilities Cost Both the cost per unit of materials and the total utilities cost are variable costs. ×

Based on the behavior shown in the following table, which of the following is a variable cost? Units Produced a. Cost Per Unit of Materials b. Cost Per Unit of Labor c. Total Utilities Cost 2 3 4 5 500 500 500 500 500 333 250 200 4,500 4,500 4,500 4,500 Multiple Choice Cost Per Unit of Materials Cost Per Unit of Labor Total Utilities Cost Both the cost per unit of materials and the total utilities cost are variable costs. ×

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Direct materials would be considered a? Group of answer choices Step Cost Mixed Cost Fixed Cost…

A: Hi Student Since there are multiple questions,we will answer only first question. If you want…

Q: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit…

A: Fixed Cost In a simple term fixed cost which describe as cost which was incurred in the entity which…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: Given the following, the only item that will generally be included in relevant cost analysis is:…

A: Introduction: The phrase "relevant cost" in managerial accounting refers to avoidable costs that…

Q: Which of the following is the expression for the total cost equation? a. Total Cost = Total Fixed…

A: Cost classification: Cost classification is a tool for cost management. By dividing total costs into…

Q: What is the definition of a variable cost? Multiple Choice The total cost (materials, labor, and…

A: The costs incurred for the production are classified as fixed and variable components. The variable…

Q: Gross margin is to absorption costing as which of the following is too variable costing? A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: How would the equation for total costs be written using the following? y = total costs v =…

A: Variable costs are costs that change with change in volume of production . Whereas, Fixed costs…

Q: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…

Q: Question Content Area Which of the following graphs in Figure 1 illustrates the behavior of a total…

A: Dear student, below is the answer to your question along with a detailed explanation:Part 1:…

Q: For the given cost function C(x) = 28900 + 500x + x², First, find the average cost function. Use it…

A: Average cost function = C(x) / x = (28900+500x+x2)/x

Q: When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in…

A: The objective of the question is to identify what cost component is estimated using the formula…

Q: The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the…

A: Solution A unit cost is a total expenditure incurred by a company to produce , store and sell one…

Q: 4. In a typical cost formula a. Fixed costs are per unit and variable costs are per unit b. Fixed…

A: A typical cost formula is represented as:Y = a + bXWhere, Y = Total Costa = Fixed Costb = Variable…

Question

Based on the behavior shown in the following table, which of the following is a variable cost?
Units Produced
a. Cost Per Unit of Materials
b. Cost Per Unit of Labor
c. Total Utilities Cost
2
3
4
5
500
500
500
500
500
333
250
200
4,500 4,500 4,500 4,500
Multiple Choice
Cost Per Unit of Materials
Cost Per Unit of Labor
Total Utilities Cost
Both the cost per unit of materials and the total utilities cost are variable costs.
x

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introducing Variable Cost & Fixed Cost

VIEW

Step 2: Explanation for For Cost Element

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

! Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced 0 560 960 123456789 10 1,360 1,760 2,160 2,560 2,960 3,360 3,760 Total Costs $ 4,660 3,960 4,360 4,960 4,060 4,260 8,760 16,160 4,960 11,992 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,440 units are produced.
On a graph, if a horizontal axis represents units of production and the vertical axis represents total costs, the total variable costs line would be shown as a(n): Question 4 options: horizontal line. vertical line. upward sloping line. downward sloping line.
A graph of which of the following types of costs would have a slope of zero? Total variable cost . Variable cost per unit. Total cost Fixed cost per unit
What is the difference between variable costing and absorption costing income statements? a. Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b. Explain the contrast between the two formats.
How do you get the variable cost per unit produced and sold?