The Manufacturing Cost of Prancer Industries for Three Months of the Year

question 142

Multiple Choice

The manufacturing cost of Prancer Industries for three months of the year are provided below: Using the high-low method, the variable cost per unit, and the total fixed costs are:

• A) $32.30 per unit and $77,520 respectively.
• B) $33 per unit and $21,100 respectively.
• C) $32 per unit and $76,800 respectively.
• D) $32.30 per unit and $22,780 respectively.

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Definitions:

Unit Of Account

The yardstick people use to post prices and record debts.

Legal Tender

Legal tender refers to money that must be accepted if offered in payment of a debt in the jurisdiction where the payment is being made.

Medium Of Exchange

An item that buyers give to sellers when they want to purchase goods and services.

Standard Of Living

The degree of wealth and material comfort available to a person or community, often measured by factors such as income, quality of housing, and access to healthcare and education.