Lakeside Manufacturing produces wooden coasters. July production costs are as follows: • • Coasters produced: 45,000 units Direct materials (variable): $18,000 Direct labor (variable): $27,000 Factory supplies (variable): $9,000 Factory supervision (fixed): $22,500 ⚫ Equipment depreciation (fixed): $15,000 Other fixed costs: $7,500 In August, Lakeside expects to produce 60,000 coasters. Assuming no structural changes, what is Lakeside's production cost per coaster for August?

Lakeside Manufacturing produces wooden coasters. July production costs are as follows: • • Coasters produced: 45,000 units Direct materials (variable): $18,000 Direct labor (variable): $27,000 Factory supplies (variable): $9,000 Factory supervision (fixed): $22,500 ⚫ Equipment depreciation (fixed): $15,000 Other fixed costs: $7,500 In August, Lakeside expects to produce 60,000 coasters. Assuming no structural changes, what is Lakeside's production cost per coaster for August?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 22E: The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is...

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Financial Accounting
Your Company has the capacity to produce 80,000 units. It produces and sells 70,000 units of a product each year. At this level of activity, Clark Company incurs the following unit costs: Direct materials $18 Direct labor 25 Variable overhead 9 Fixed overhead 10 Variable S&A 7 Fixed S&A 12 A special order for 9,000 units under consideration would require the one-time rental of a special machine. The rental is for $36,000. If the order is accepted, $5 of the variable S&A can be avoided. What is the least amount the company can charge per unit in this special pricing decision? (Think breakeven.) O $61 O $56 O $58 O $59 O $57
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