Use the following information for questions
Papillon Co. has determined the following per unit amounts: $\begin{array}{lrlr}
\text { Direct materials } & \$ 30 & \text { Fixed selling and administrative } & \$ 60 \
\text { Direct labor } & 36 & \text { Variable overhead } & 24 \
\text { Desired ROI } & 33 & \text { Variable selling and administrative } & 15 \
\text { Fixed overhead } & 45 & &
\end{array}$
-The cost base using the variable-cost approach is
A) $90.
B) $105.
C) $195.
D) $135.

Question

Quizplus · Accepted Answer

The variable-cost approach includes all variable costs: Direct Materials ($30), Direct Labor ($36), Variable Overhead ($24), and Variable Selling and Administrative ($15). Adding these together gives $30 + $36 + $24 + $15 = $105.

Use the Following Information for Questions Papillon Co -The Cost Base Using the Variable-Cost Approach Is A) $90

Use the Following Information for Questions
Papillon Co -The Cost Base Using the Variable-Cost Approach Is
A) $90