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

question 176

Multiple Choice

Use the information below to answer the following question(s) .Honda Heaven produces and sells an auto part for $20.00 per unit.Direct materials are $8 per unit, while direct manufacturing labour averages $1.50 per unit.Variable manufacturing overhead is $0.50 per unit and fixed manufacturing overhead is $250,000 per year.Administrative expenses, all fixed, run $90,000 per year, with sales commissions of $2 per part.Production is 100,000 parts per year.And this year, 75,000 boxes were sold.
-Under variable costing, which of the following expenses is inventoriable?

• A)variable manufacturing overhead
• B)direct manufacturing labour and fixed manufacturing overhead
• C)marketing and direct manufacturing labour
• D)variable manufacturing overhead and administrative
• E)variable and fixed manufacturing overhead

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Definitions:

Constraint

A limitation or condition that must be satisfied by a system, process, or variable, often used in optimization and database management.

Changing Cell

In spreadsheet applications, a cell whose value is altered based on changes in a formula or as part of a scenario analysis.

Objective Cell

In optimization and spreadsheet software, the cell that contains the formula that is to be maximized or minimized.

Goal Seek

A function in spreadsheet software that finds the input value needed to achieve a specific goal or result in a formula.