Direct Material Cost Is $5

question 8

Multiple Choice

Direct material cost is $5.00 per unit; direct labour is $6.00 per unit; variable overhead is $2.50 per unit; fixed overhead is $1.00 per unit; administration salaries are $7.00 per unit; and advertising amounts to $4.00 per unit. What is the total variable cost per unit?

• A) $13.50
• B) $24.50
• C) $21.50
• D) $25.50

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Definitions:

Lineage

A unilineal kin group descended from a common ancestor or founder who lived four to six generations ago and in which relationships among members can be exactly stated in genealogical terms.

Unilineal Kin Group

A social group where membership is inherited through either the male (patrilineal) or female (matrilineal) line exclusively.

Nuclear Families

A family group consisting of parents and their children, regarded as a basic social unit.

Unilineal Descent

Descent traced exclusively through either the male or the female line of ancestry to establish group membership.