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Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has

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Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has

Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity.

Production Category   Lower Limit   Upper Limit
Units of Production   4,000 units   6,000 units
Direct Materials   $60,000   $90,000
Direct Labor   $80,000   $120,000
Manufacturing Overhead:
Indirect materials   $25,000   $37,500
Indirect labor   $40,000   $50,000
Depreciation   $20,000   $20,000
Selling and Admin. Expenses:
Sales salaries   $50,000   $65,000
Office salaries   $30,000   $30,000
Advertising   $45,000   $45,000
Other   $15,000   $20,000
Totals   $365,000   $477,500

The only variable expenses for this company are
A) indirect materials, indirect labor, direct materials, and direct labor.
B) all categories of selling and administrative expenses.
C) indirect materials, direct materials, and direct labor.
D) none of the above.

Textbook

Managerial Accounting

Edition: 4^th

Author: Braun

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