Homework Answers
Estimated Variable cost per unit = $85
Working
| Direct material | $ 35.00 |
| Direct labor | $ 25.00 |
| Variable manufacturing overhead | $ 20.00 |
| Variable selling expense | $ 5.00 |
| Total variable cost per unit | $ 85.00 |
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The estimated unit costs for a company to produce and sell a product at a level...
The estimated unit costs for a company to produce and sell aproduct at a level...
The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost Item Estimated Unit Cost Direct material $ 32 Direct labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 6 Variable selling expenses 3 Fixed selling expenses 4 What are the estimated conversion costs per unit?
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Goshford Company produces a single product and has capacity to produce 140,000 units per month. Costs to produce its current sales of 112,000 units follow. The regular selling price of the product is $136 per unit. Management is approached by a new customer who wants to purchase 28,000 units of the product for $79.20 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
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