EA5. LO 2.2 Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit $12 Direct materials Direct labor 10 Indirect materials 2 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions 4 3. 8 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?

EA5. LO 2.2 Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit $12 Direct materials Direct labor 10 Indirect materials 2 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions 4 3. 8 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

EA5. LO 2.2 Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data
represents average cost per unit for 15,000 units of production.
Average Cost per Unit
$12
Direct materials
Direct labor
10
Indirect materials
2
Fixed manufacturing overhead
Variable manufacturing overhead
Fixed selling and administrative expenses
Variable sales commissions
4
3.
8
25
Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
B. If 18,000 units are produced, what is the variable cost per unit?
C. If 21,000 units are produced, what are the total variable costs?

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