Answers to Assignment 2 - The University of Texas at Austin...

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The University of Texas at Austin McCombs School of Business, Business Foundations Program ACC 310F: Foundations of Accounting, Fall 2010 Answers to Assignment 2
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Part A 1. How should the cost of equipment rentals be classified? Fixed cost 2. How should the payroll cost for Jerry Karlin be classified? Variable cost 3. How should the cost of advertising be classified? Variable cost 4. How should the cost of the corn oil be classified? Overhead cost 5. How should the payroll cost for Joseph Dolan be classified? Direct labor cost 6. If 32,000 units were produced, what are the variable costs per unit (rounded to the nearest penny)? 0.89 7. If 32,000 units were produced, what are the total fixed costs? 24,000 8. If the sales price is $2.00 per unit, calculate the break-even point for the product line; as needed, round to the nearest whole unit. 21,622 9. If the company expects to sell 34,000 units next month, what is the projected net income using the contribution margin model? Per
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Answers to Assignment 2 - The University of Texas at Austin...

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