Cool Pool has these costs associated with production of 24,000 units of accessory products: direct materials, $65; direct labor, $105; variable manufacturing overhead, $55; total fixed manufacturing overhead, $1,080,000. What is the cost per unit under both the variable and absorption methods?

Cool Pool has these costs associated with production of 24,000 units of accessory products: direct materials, $65; direct labor, $105; variable manufacturing overhead, $55; total fixed manufacturing overhead, $1,080,000. What is the cost per unit under both the variable and absorption methods?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Younes Incorporated manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below: Per Unit $ 220 $ 38 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling and administrative expense The above per unit data are based on annual production of 4,000 units of the component. Assume that direct labor is a variable cost. What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units? $ 1 $ 8 $ 16 $ 4 $16
Kubin Company's relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.70 $ 4.70 $ 2.20 $ 5.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,250 to 20,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,250 to 20,251 units? 3. Assume that Kubin Company produced 20,250 units and expects to sell 19,980 of them. If a new customer unexpectedly emerges and expresses interest in buying the 270 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?…
Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?
Event Company produces a single product with the following characteristics: price per unit $24.00, variable materials cost per unit $8.60, variable labour cost per unit $3.60, variable overhead cost per unit $1.80, and fixed overhead cost per unit $2.00. Event Company's manufacturing fixed costs are $5,000,000 and selling, general and administration fixed costs are $2,500,000. Which of the following numbers is the dollar sales required for Event Company to earn a target profit of $500,000? Select one: a. $19,200,000 b. $18,000,000 C. $12,500,000 d. $24,000,000
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company’s three products: A, B, and C: Product A B C Selling price $ 90.00 $ 100.00 $ 110.00 Variable costs: Direct materials 44.40 15.00 64.30 Direct labour 18.00 30.00 12.00 Variable manufacturing overhead 6.00 10.00 4.00 Total variable cost 68.40 55.00 80.30 Contribution margin $ 21.60 $ 45.00 $ 29.70 Contribution margin ratio 24 % 45 % 27 % Due to a strike in the plant of one of its competitors, demand for the company’s products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of…
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:Units Produced Total Costs80,000 $25,200,00099,000 25,220,000130,000 31,770,000a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %
NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending inventories for the period are 12,000 units and 18,000 units respectively. Ignoring income taxes, if the fixed overhead application rate is P2.50 per unit, what would the income have been using variable costing?
Amanda Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed. Indirect labor Property taxes Direct labor Direct materials Depreciation (straight-line) Utilities Maintenance 5,000 Units $3,000 7,000 28,000 22,000 4,000 5,000 9,000 10,000 Units $6,000 7,000 56,000 44,000 4,000 8,000 11,000 Fixed Cost Mixed Cost Variable Cost
Which different terms are used to refer to rate of return?
Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.65 Direct labor $ 3.70 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 25,900 Sales commissions $ 0.65 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 4,800 If the selling price is $20.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $4.25 $6.30 $7.55 $10.35
Pedregon Corporation has provided the following information: Cost per Unit Cost per PeriodDirect materials $6.95 Direct labor $3.50 Variable manufacturing overhead $1.75 Fixed manufacturing overhead $19,800Sales commissions $0.40 Variable administrative expense $0.50 Fixed selling and administrative expense $7,700. If $4,500 UNITS ARE SOLD, THE TOTAL VARIABLE COST IS CLOSEST TO:

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