The Total Traceable Costs of the Account Billing Activity Centre

question 101

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-What is the variable cost per line?

• A) $0.068
• B) $0.098
• C) $0.030
• D) Cannot be determined

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