Ross Corporation Produces a Single Product

question 46

Multiple Choice

Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost.
-Under variable costing,the unit product cost is:

• A) $24 per unit
• B) $20 per unit
• C) $18 per unit
• D) $21 per unit

Assess the role of organizational culture in fostering a positive work environment and its impact on productivity and customer satisfaction.

Understand the nuances of incentive plans and their potential effects on employee behavior and organizational outcomes.

Understand the nature and behavior of fixed and variable costs, and their relationship to production volume.

Distinguish between direct and indirect costs, and their impact on product costing and pricing.