12. Buildz Manufacturing currently produces 2,000 tables per month. The following per unit data for 2,000...
12. Buildz Manufacturing currently produces 2,000 tables per month. The following per unit data for 2,000 tables apply for sales to regular customers: Direct materials $75 Direct manufacturing labor 20 Variable manufacturing overhead 20 Fixed manufacturing overhead 40 Total manufacturing costs $155 What is the per unit cost if 4,000 units are produced assuming the company operates within its relevant range?
A) $125.00 B) $195.00 C) $135.00 D) $155.00 E) None of the above
Homework Answers
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Variable cost per unit = 75 + 20 + 20 = 115 Fixed cost = 2,000*40 = 80,000 Total Cost = (115*4000) + 80,000 = 540,000 Cost per unit = 540,000/4,000 = 135 Option C is the answer |
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12. Buildz Manufacturing currently produces 2,000 tables per
month. The following per unit data for 2,000...
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