Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Polka King Gifts had the following costs in March when 400 ceramic statues were produced: materials, $4,200;
labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units
and production still remains within the relevant range, which of the following costs will stay the same? A. Total
variable cost B. Variable cost per unit C. Fixed cost per unit D. None of these answer choices is correct. E. Total
cost per unit
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Transcribed Image Text:Polka King Gifts had the following costs in March when 400 ceramic statues were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units and production still remains within the relevant range, which of the following costs will stay the same? A. Total variable cost B. Variable cost per unit C. Fixed cost per unit D. None of these answer choices is correct. E. Total cost per unit
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