If the Unit Cost of Direct Materials Is $20, Direct

question 14

Multiple Choice

If the unit cost of direct materials is $20, direct labor is $12, variable overhead is $2, avoidable fixed costs are $6,000, unavoidable fixed costs are $5,000 and sunk costs are $9,000, what is the total relevant cost for 300 products?

• A) $15,200
• B) $16,200
• C) $24,200
• D) $25,200

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Definitions:

Operant Conditioning

An instructional method in which the magnitude of an action is either encouraged or suppressed through positive or negative feedback.

Pay Schedules

The structure outlining how frequently and in what manner employees receive their salaries or wages.

Secondary Reinforcer

A stimulus that has become rewarding through its association with a primary reinforcer.

Primary Reinforcer

A fundamental stimulus that fulfills a basic need or instinct, such as food for hunger, inherently rewarding without learning.