Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 4,000 bookcases per year.You are required to classify below itemIndirect Materials, factory18000 Which one below is correct.Please provide explanationOption AVariable Cost,Indirect Cost,Overhead Cost,Product CostBVariable Cost,direct Cost,Overhead Cost,Product CostCVariable Cost,Indirect Cost,Overhead Cost,Period CostDVariable Cost,Indirect Cost,Prime Cost,Product Cost

Variable cost means the cost which vary with the level of output. Indirect cost means the cost which…

Answered: Heritage Company manufactures a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 4,000 bookcases per year.You are required to classify below item

Indirect Materials, factory

18000

	Which one below is correct.Please provide explanation
Option
A	Variable Cost,Indirect Cost,Overhead Cost,Product Cost
B	Variable Cost,direct Cost,Overhead Cost,Product Cost
C	Variable Cost,Indirect Cost,Overhead Cost,Period Cost
D	Variable Cost,Indirect Cost,Prime Cost,Product Cost

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