Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data
Question:
Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 14,000 units of production.
Average Cost per Unit | |
Direct Materials | $12 |
Direct Labor | 9 |
Indirect Materials | 2 |
Fixed manufacturing overhead | 4 |
Variable manufacturing overhead | 3 |
Fixed selling and administrative expenses | 8 |
Variable sales commissions | 25 |
Using the cost data from Rose Company, answer the following questions:
A. If 9,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
C. If 21,000 units are produced, what are the total variable costs?
Total variable costs $
D. If 11,000 units are produced, what are the total variable costs?
Total variable costs $
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer