Fixed Costs Remain Constant at $200,000 Per Month

question 42

Multiple Choice

Fixed costs remain constant at $200,000 per month.During high-output months variable costs are $160,000, and during low-output months variable costs are $40,000.What are the respective high and low indirect cost allocation rates if professional labour-hours are 8,000 for high-output months and 2,000 for low-output months?

• A)$45.00 per hour; $120.00 per hour
• B)$45.00 per hour; $45.00 per hour
• C)$25.00 per hour; $20.00 per hour
• D)$56.20 per hour; $120.00 per hour
• E)$25.00 per hour; $100.00 per hour

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Definitions:

Misplaced

Incorrectly placed or lost, not being in its expected or designated location.

Cafeteria Manager

An individual responsible for overseeing the operations of a cafeteria, including food preparation, menu planning, and staff management.

Car Keys

Physical keys or electronic devices used to lock, unlock, and start an automobile.

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A severe lack of care or attention to duty that represents a reckless disregard for the safety or lives of others, often leading to serious harm or damage.