Answer the Following Questions Using the Information Below:
the Mt

question 234

Multiple Choice

Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 60 \\\text { Direct manufacturing labour } & 10 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions (2\% of sales) } & 4 \\\text { Administrative salaries } & \underline { 16 } \\\quad \text { Total } & \$ 140\end{array}$$
-What are the inventoriable costs per unit associated with Product SK2040?

• A)$120
• B)$140
• C)$88
• D)$50

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Definitions:

Matching Capacity

A strategy to adjust the supply of a company's capacity to meet demand by scaling operations or workforce.

Impact on Expenses

The effect or influence that certain actions or events have on the costs incurred by a business.

Time-Driven Activity-Based Costing

A refinement of activity-based costing that assigns costs based on the time resources are actually used for activities, rather than on predetermined allocations.

Tech Support Department

A specialized unit within a company that provides technical assistance and support to customers or internal users.