Sorter Company Has Provided the Following Data for the Third

question 27

Multiple Choice

Sorter Company has provided the following data for the third quarter of the most recent year:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 500,000 \\\hline \text { Fixed Manufacturing Overhead } & 55,000 \\\hline \text { Direct Labour } & 72,500 \\\hline \text { Fixed Selling Expenses } & 46,250 \\\hline \text { Variable Manufacturing Overhead } & 41,000 \\\hline \text { Variable Administrative Expenses } & 48,000 \\\hline \text { Direct Materials } & 51,500 \\\hline \text { Fixed Administrative Expenses } & 44,500 \\\hline \text { Variable Selling Expenses } & 49,750\\\hline \end{array}$ Assume that direct labour is a variable cost and that there was no beginning or ending inventories.



-Which of the following items of Sorter Company's expenses and/or costs can be misleading if reported on a per unit of production and/or sales basis?

• A) Direct labour
• B) Direct materials.
• C) Variable administrative expenses.
• D) Fixed manufacturing overhead.

---

Definitions:

Internal Supply

The source of talent within an organization that can be utilized to fill open positions or roles through promotions or internal transfers.

Staffing Policies

Guidelines and practices that organizations follow to govern the recruitment, selection, and placement of employees.

Forecasting Costs

The process of estimating the expenses that will be incurred in the future by a business or project.

External Supply

External Supply refers to goods, materials, or services sourced from outside the organization to support its operations or production processes.