Use the Information Below to Answer the Following Question(s)

question 52

Multiple Choice

Use the information below to answer the following question(s) .Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-Advanced Lighting's total variable costs are $102 and total manufacturing costs are $98.Standard variable marketing/administrative costs constitute 20 percent of the total variable costs.Respectively, what are Advanced Lighting's standard variable manufacturing costs and standard fixed manufacturing costs?

• A)$77.60 and $81.60
• B)$78.40 and $98.00
• C)$81.60 and $16.40
• D)$81.60 and $77.60
• E)$78.40 and $16.40

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Definitions:

Budget Line

An illustration showing all the different ways two products can be acquired using a certain amount of money, assuming the prices do not change.

Utility

A measure of the satisfaction or pleasure that individuals get from the consumption of goods and services.

Budget Line

A diagram illustrating every potential mix of two commodities that are affordable within a specific budget, considering their set prices.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, bonuses, and other income sources before taxes.