Question

In: Accounting

Cost applicable to products calculation

Below some information has been provided. Answer the required questions from the info provided.

 

Solutions

Expert Solution

Variable Costs for one unit = $ 5.30 + $ 2.80 + $ 1.40 + $ 1.20 + $ 0.45 = $ 11.15
 
6. 12,500 units x $ 11.15 = $ 139,375
 
7. Fixed Manufacturing Overhead = $ 4.00 / unit
 
( $ 4.00 x 10,000 units ) / 8,000 units = $ 5 / unit
 
8. Fixed Manufacturing Overhead = $ 4.00 / unit
 
( $ 4.00 x 10,000 units ) / 12,500 units = $ 3.2 / unit
 
10. 12,500 x $ 3.2 = $ 40,000

6: $139,375

7: $5.00/unit

8: $3.2/unit

10: $40,000

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