If the Unit Cost of Direct Materials Is $20, Direct

question 145

Multiple Choice

If the unit cost of direct materials is $20, direct labor is $12, variable overhead is $2, avoidable fixed costs are $6,000, unavoidable fixed costs are $5,000 and sunk costs are $9,000, what is the total relevant cost for 300 products?

• A)$15,200
• B)$16,200
• C)$24,200
• D)$25,200

---

Definitions:

Alhambra

A fortress and palace complex located in Granada, Spain, renowned for its stunning Islamic art and architecture, reflecting the sophistication of the Moorish culture.

Purity of Writing

The clarity, simplicity, and precision of expression in written language, avoiding unnecessary complexity or embellishment.

Calligraphy

The art of beautiful handwriting using specialized tools and techniques, often associated with high cultural status and used for religious, artistic, and scholarly works.

Proverb

A short, well-known saying that expresses a general truth, piece of advice, or cultural wisdom.