ACCT 221 help A Guide to career/Snaptutorial ACCT 221 help A Guide to career/Snaptutorial | Page 2

Question 4
When production levels are expected to increase within a relevant
range, and a flexible budget is used, what effect would be anticipated
with respect to each of the following costs?
Fixed costs per unit Variable costs per unit
No change
No change
Decrease
No change
No change
Decrease
Decrease
Decrease
Question 5
Wang Company provides the following information for their first year
of operation:
Sales
5,000 units @ $10
Selling and administrative costs:
Fixed
$1,000
Variable
$1 per unit
Variable production costs per unit:
Direct materials
$2
Direct labor
$2
Variable overhead
$1
Fixed factory overhead
$7,500
Production
7,500 units