Question

The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions 2% of sales) Administrative salaries Total 8888 What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost? OA. 82% OB. 77% OC. 71% OD. 83% Click to select your answer EliteDisplay E2211

Answer 1

Answer- The percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost= 82% (Option A).

Explanation- Total variable costs per unit=Direct materials+ Direct manufacturing labor+ Variable manufacturing overhead + Sales commissions

= $86+$30+$26+$22

= $164 per unit

Total costs per unit = $200 per unit

Percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost = (Total variable costs per unit/ Total costs per unit)*100

= ($164 per unit/$200 per unit)*100

= 82%