Questions -
Q1. Which of the following statements is correct?
A. All period costs are controllable both in the short term and in the long term
B. Capacity costs (aka fixed costs) are controllable in the long term but not in the short term
C. Variable costs are controllable both in the short term and in the long term
D. Both B and C
Q2. Alpha Company sells 1000 units of product Z50 per month at a price of $80 per unit. Its variable costs are: direct materials $20/unit, direct labor $8/unit, and variable overhead $4/unit. Alpha allocates its fixed overhead based on direct labor dollars, with an allocation rate of $5 per DL$. How much is the profit margin per unit of product Z50?
A. $8
B. $40
C. $43
D. $48