Data Units Per unit Relevant? Sales price per unit 5,300 $ 106.00 No Direct materials per unit 23.00 ? Direct labor per unit 18.00 ? Variable manufacturing overhead per unit 14.00 Yes Fixed manufacturing overhead (MOH) : per month 27.00 Avoidable fixed MOH per month ? No Unavoidable fixed MOH per month ? No Sales commissions per unit 3.00 No Advertising costs per month 1.80 No Purchase price of outsourced product per unit 59.00 Yes Shipping costs of outsourced product per unit 1.00 Yes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data		Units	Per unit	Relevant?
Sales price	per unit	5,300	$ 106.00	No
Direct materials	per unit		23.00	?
Direct labor	per unit		18.00	?
Variable manufacturing overhead	per unit		14.00	Yes
Fixed manufacturing overhead (MOH) :	per month		27.00
Avoidable fixed MOH	per month		?	No
Unavoidable fixed MOH	per month		?	No
Sales commissions	per unit		3.00	No
Advertising costs	per month		1.80	No
Purchase price of outsourced product	per unit		59.00	Yes
Shipping costs of outsourced product	per unit		1.00	Yes

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