Direct materials $50,direct labour $20,variable overhead costs $40,and fixed overhead costs $30.What is the incremental cost of one unit in the short term?
A)$30
B)$70
C)$110
D)$140

Question

Quizplus · Accepted Answer

Incremental cost in the short term includes only variable costs: direct materials ($50), direct labour ($20), and variable overhead costs ($40), totaling $110. Fixed overhead costs are not included in incremental costs.

Direct Materials $50,direct Labour $20,variable Overhead Costs $40,and Fixed Overhead