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e variable cost per unit

e variable cost per unit

FINANCIAL ACCOUNTING
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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Two businesses producing Home Furniture are located in Muscat; different production lines are associated with each. Both businesses inaur different cost categories based on the activity level: Direct material, Direct Labor, Variable Manufacturing Overheads, Fixed Manufacturing Overheads, and Fixed managerial and sales expenses. The following table shows the cost details incurred by each business of the dining tables production line for October month: Business A Business B Output or level of activity 1,000 units 900 units OMR OMR Selling price per unit 20 15 Material cost per unit Labour cost per unit 12 Manufacturing overheads per unit Warehouses rent 5,000 4,500 Managerial and sales expenses 2,000 1,500 Based on the figures given to you answer the following questions:
Transcribed Image Text:Two businesses producing Home Furniture are located in Muscat; different production lines are associated with each. Both businesses inaur different cost categories based on the activity level: Direct material, Direct Labor, Variable Manufacturing Overheads, Fixed Manufacturing Overheads, and Fixed managerial and sales expenses. The following table shows the cost details incurred by each business of the dining tables production line for October month: Business A Business B Output or level of activity 1,000 units 900 units OMR OMR Selling price per unit 20 15 Material cost per unit Labour cost per unit 12 Manufacturing overheads per unit Warehouses rent 5,000 4,500 Managerial and sales expenses 2,000 1,500 Based on the figures given to you answer the following questions:
What is the variable cost per unit of dining tables for Business B? Ob. 6 4. d. 7 Calculate the total cost if business B produces 1,500 tables in a month? Oa 9,000 culate the total cost per unit if business A produces 600 dining tables in a month? O b. 6,000 18.667 Oc 15,000 Ob. 10 Oc 25 Od 18,000 Od 7.467
Transcribed Image Text:What is the variable cost per unit of dining tables for Business B? Ob. 6 4. d. 7 Calculate the total cost if business B produces 1,500 tables in a month? Oa 9,000 culate the total cost per unit if business A produces 600 dining tables in a month? O b. 6,000 18.667 Oc 15,000 Ob. 10 Oc 25 Od 18,000 Od 7.467
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