Question

Need answers for E,F,G,H

Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 14,000 units of production.

	Average Cost per Unit
Direct Materials	$12
Direct Labor	9
Indirect Materials	2
Fixed manufacturing overhead	5
Variable manufacturing overhead	2
Fixed selling and administrative expenses	8
Variable sales commissions	25

Using the cost data from Rose Company, answer the following questions:

A. If 9,000 units are produced, what is the variable cost per unit?

Variable cost per unit $ 25

B. If 18,000 units are produced, what is the variable cost per unit?

Variable cost per unit $ 25

C. If 21,000 units are produced, what are the total variable costs?

Total variable costs $ 525,000

D. If 11,000 units are produced, what are the total variable costs?

Total variable costs $275,000

E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $

F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $

G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $

H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $

Answer 1

Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 14,000 units of production.

	Average Cost per Unit
Direct Materials	$12
Direct Labor	9
Indirect Materials	2
Fixed manufacturing overhead	5
Variable manufacturing overhead	2
Fixed selling and administrative expenses	8
Variable sales commissions	25

E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $108000

F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $118000

G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $5.68

H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $4.80

Workings

E.

Fixed manufacturing overhead (5*14000)	70,000
Variable manufacturing overhead (2*19000)	38,000
Total manufacturing OH	108,000

F.

Fixed manufacturing overhead (5*14000)	70,000
Variable manufacturing overhead (2*24000)	48,000
Total manufacturing OH	118,000

G.

Fixed manufacturing overhead (5*14000)	70,000
Variable manufacturing overhead (2*19000)	38,000
Total manufacturing OH	108,000

146,000 / 19,000 = 5.68

H.

Fixed manufacturing overhead (5*14000)	70,000
Variable manufacturing overhead (2*25000)	50,000
Total manufacturing OH	120,000

= 170,000 / 25,000 = 4.80