Question

Ridez Manufacturing currently produces 3,000 bicycles per month. The following per unit data apply for sales to regular customers: $52 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 14 16 $93 The plant has capacity for 5,000 bicycles and is considering expanding production to 4,000 bicycles. What is the per unit cost of producing 4,000 bicycles? O A. $89.00 per unit O B. $97.00 per unit OC. $72.00 per unit OD. $124.00 per unit

Answer 1

Answer: A. $89.00 per unit

calculating per unit cost of producing 4,000 bicycles Particulars - Amit einer a) Direct materials (52X4000) ; 208,000 .46,000 56,000 b) Direet manufactoring labows (11x4000) c) variable manufacturing of '18 (14x4009) d) Erscd manulaçluring o H'S(15 X3000) e) Total manufacturing costs f) No of units g) per price per unit fel. 48,000 356000 4,000 89