At an activity level of 9100 machinehours in a month Falks C

At an activity level of 9,100 machine-hours in a month, Falks Corporation\'s total variable production engineering cost is $803,530 and its totall fixed production engineering cost is $161,280. What would be the total production engineering cost per machine-hour, both fxed and varlable, at an activity level of 9,600 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.) Multiple Choice $104.21 $105.28 $105.10 104.75

Solution

Question no:6 Answer is option (3) $105.10 variable production Engineering cost =$803,530 at 9100 machine hours level Fixed Production Engineering Cost =$161,280 Total production Engineering Ocst both Variable and Fixed at 9600 Hours level Varaible production Engineering Cost per hour =$803,530/9100 =$88.30 Fixed production Engineering Cost per hour =$161,280/9600 =$16.80 Total production Engineering cost =$88.30+$16.80=$105.10 Question no:9 Answer is option (2) $49,550 Total direct costs relating to Cosmetics department Amount in $ Cosmetic department Cost of sales - Northridge Store 39700 Cosmetics department Sales Commissions -Northridge Store 5610 Cosmetic department Manager salary - Northridge Store 4240 Total Direct Costs 49550