Question

1. Which of the following is a period cost? Multiple Choice Depreciation of factory maintenance equipment....

1. Which of the following is a period cost?

Multiple Choice

Depreciation of factory maintenance equipment.

Salary of the company's CFO.

Cost of labor to assemble products in the production facility.

Salary of factory supervisor.

Omega Company reported the following information for the company's two products:

Product X Product Y
Selling price per unit $ 35 $ 25
Variable cost per unit 20 15


2. Assume that 75,000 machine hours are available; product X takes 4 machine hours to produce, and product Y takes 2 machine hours to produce. The company can sell all it can make of either product. What is the contribution margin per machine hour for Product Y?

Multiple Choice

  • $25 per machine hour

  • $20 per machine hour

  • $10 per machine hour

  • $5 per machine hour

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