Cobalt Gearworks manufactures and sells precision tools. The following costs relate to its operations: ⚫ Direct materials cost per unit: $12 • Direct labor cost per unit: $9 ⚫ Variable manufacturing overhead per unit: $4 Variable selling and administrative expense per unit: $5 • Fixed manufacturing overhead: $150,000 ⚫ Fixed selling and administrative expense: $60,000 ⚫ Units produced and sold: 20,000 What is the total variable expense for the 20,000 units produced and sold?

Cobalt Gearworks manufactures and sells precision tools. The following costs relate to its operations: ⚫ Direct materials cost per unit: $12 • Direct labor cost per unit: $9 ⚫ Variable manufacturing overhead per unit: $4 Variable selling and administrative expense per unit: $5 • Fixed manufacturing overhead: $150,000 ⚫ Fixed selling and administrative expense: $60,000 ⚫ Units produced and sold: 20,000 What is the total variable expense for the 20,000 units produced and sold?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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