Bob’s Bistro produces party-sized hoagie sandwiches. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs:

Direct materials	$130,000
Direct labor	100,000
Variable overhead	60,000
Fixed overhead	260,000

Required:

If required, round your answers to the nearest cent.

1. Calculate the prime cost per unit.
$fill in the blank 1 per unit

2. Calculate the conversion cost per unit.
$fill in the blank 2 per unit

3. Calculate the total variable cost per unit.
$fill in the blank 3 per unit

4. Calculate the total product (manufacturing) cost per unit.
$fill in the blank 4 per unit

5. What if the number of units decreased to 40,000 and all unit variable costs stayed the same? indicate the impact on the following costs.

a. Total direct materials decreases by 20%

b. Total direct labor decreases by 20%

c. Total variable overhead decreases by 20%

d. Total fixed overhead does not change no change

e. Unit prime cost decreases by 20%

f. Unit conversion cost decreases by less than 20%

What would the product cost per unit be in this case?

Answer rating: 100% (QA)

1 Calculate the prime cost per unit Direct material direct labor Noof units 130000 100000 50000 46 2 ... View the full answer