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Problem 1: B.Co has recorded the following data in the two most recent period.
Total Costs of Production Volume of Production
$ Units
13,500 700
18,300 1,100
What is the best estimate of the company's fixed costs per period?
A. $13,500
B. $13,200
C. $5,100
D. $4,800
Problem 2: Which of the following are prime costs?
(i) Direct materials
(ii) Direct labour
(iii) Indirect labour
(iv) Indirect expenses
A. (i) and (ii)
B. (i) and (iii)
C. (ii) and (iii)
D. (ii) and (iv)
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