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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