Question

me media editor negotiate sales of subsidiary rights to market a book for other uses such as movie rights. True False

Answer 1

Option D

Below is an explanation and working:-

Particulars	Quantity	Price Per Unit	Amount (Quantity * Price Per Unit)
Direct Materials	2000	$               50.00	$                                100,000.00
Direct Manufacturing Labor	2000	$                 5.00	$                                  10,000.00
Variable Manufacturing Overhead	2000	$               14.00	$                                  28,000.00
Fixed Manufacturing Overhead	2000	$                 5.00	$                                  10,000.00
Total Cost			$                                148,000.00
Per Unit Cost		Total Cost/2000	$                                          74.00

Fixed Manufacturing Overhead

1000

10

$                                  10,000.00

This cost $ 10,000 remains fixed till the production capacity at 3000 bicycles.

So, Fixed Manufacturing Overhead @ 2000 bicycle of production = $10,000/2000 = $5