Question
In: Accounting
If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $454,300, what...
If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $454,300, what is the manufacturing cost per unit if:
a. 5,900 units are manufactured and the company
uses the variable costing concept?
$
b. 7,700 units are manufactured and the company
uses the variable costing concept?
$
c. 5,900 units are manufactured and the company
uses the absorption costing concept?
$
d. 7,700 units are manufactured and the company
uses the absorption costing concept?
$
Solutions
Expert Solution
Answer a.
Manufacturing cost per
unit = Variable manufacturing cost
Manufacturing cost per unit = $8.00
Answer b.
Manufacturing cost per
unit = Variable manufacturing cost
Manufacturing cost per unit = $8.00
Answer c.
Fixed
manufacturing cost per unit = Fixed manufacturing cost / Units
manufactured
Fixed manufacturing cost per unit = $454,300 / 5,900
Fixed manufacturing cost per unit = $77.00
Manufacturing cost per
unit = Variable manufacturing cost + Fixed manufacturing cost
Manufacturing cost per unit = $8.00 + $77.00
Manufacturing cost per unit = $85.00
Answer d.
Fixed
manufacturing cost per unit = Fixed manufacturing cost / Units
manufactured
Fixed manufacturing cost per unit = $454,300 / 7,700
Fixed manufacturing cost per unit = $59.00
Manufacturing cost per
unit = Variable manufacturing cost + Fixed manufacturing cost
Manufacturing cost per unit = $8.00 + $59.00
Manufacturing cost per unit = $67.00
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