Fixed Costs Remain Constant at $200,000 Per Month

question 42

Multiple Choice

Fixed costs remain constant at $200,000 per month.During high-output months variable costs are $160,000, and during low-output months variable costs are $40,000.What are the respective high and low indirect cost allocation rates if professional labour-hours are 8,000 for high-output months and 2,000 for low-output months?

• A)$45.00 per hour; $120.00 per hour
• B)$45.00 per hour; $45.00 per hour
• C)$25.00 per hour; $20.00 per hour
• D)$56.20 per hour; $120.00 per hour
• E)$25.00 per hour; $100.00 per hour

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Definitions:

Cognitive Dissonance

the psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Alternative Evaluation

The process by which consumers compare different products or brands to make purchasing decisions.

Problem Recognition

The initial stage in the consumer decision-making process, where the consumer identifies a need or problem that requires resolution.

Information Search

The process by which consumers seek out and review information about products, services, or brands to make informed purchasing decisions.