Econ Services Has Requested Your Services in Determining the Book

question 11

Multiple Choice

Econ Services has requested your services in determining the book values of the following assets,respectively.

General repairs and maintenance for the automobile amounted to $4,000.Machinery maintenance included $2,000 for general upkeep.
What are the book values for Auto and Machinery,respectively?

• A)$5,000;$55,000
• B)$9,000;$57,000
• C)$20,000;$150,000
• D)$35,000;$245,000
• E)$1,000;$53,000

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Definitions:

Variable Component

Denotes a part of a cost or expense that varies directly with the level of activity or output.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of production or sales but not in direct proportion.

Electrical Cost

The expense associated with the consumption of electrical energy or the cost related to electrical work in construction or maintenance.

Production Volume

The total quantity of goods or products manufactured within a specific period.