Question

12. It indirect material at 80% capacity (800 units) is * 248, of
which variable component is * 0.06 per unit, the amount of
indirect material at 100% capacity would be :
(a) 310
(b) 600
(c) 260
(d) None of the above​

Answer 1

Answer:

the cost object is a product being manufactured, it is likely that direct materials are a variable cost. (If one pound of material is used for each unit, then this direct cost is variable.) However, the product's indirect manufacturing costs are likely a combination of fixed costs and variable costs.