Given the following numbers from Webster Company, match the correct value with its appropriate term.Webster Company sells a product for $20.Unit cost information is as follows:
Webster normally produces 50,000 units and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $87,000.
-Variable cost ratio
A)$6
B)30%
C)$14
D)70%
E)$290,000
F)14,500

Question

Given the following numbers from Webster Company, match the correct value with its appropriate term.Webster Company sells a product for $20.Unit cost information is as follows:
Webster normally produces 50,000 units and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $87,000. 
-Variable cost ratio
A)$6 
B)30% 
C)$14 
D)70% 
E)$290,000 
F)14,500

Quizplus · Accepted Answer

Variable cost ratio is calculated by dividing variable cost by total cost. In this case, variable cost is $290,000 and total cost is $414,500. Therefore, variable cost ratio is $290,000/$414,500 = 70%.

Given the Following Numbers from Webster Company, Match the Correct