Product Costs Bob’s Bistro produces party-sized hoagie sandwiches. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $200,000 100,000 60,000 260,000 Required: 1. Calculate the prime cost per unit. 2. Calculate the conversion cost per unit. 3. Calculate the total variable cost per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Product Costs Bob’s Bistro produces party-sized hoagie sandwiches. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $200,000 100,000 60,000 260,000 Required: 1. Calculate the prime cost per unit. 2. Calculate the conversion cost per unit. 3. Calculate the total variable cost per unit. 4. Calculate the total product (manufacturing) cost per unit. 5. What if the number of units decreased to 40,000 and all unit variable costs stayed the same? Explain what the impact would be on the following costs: total direct materials, total direct labor, total variable overhead, total fixed overhead, unit prime cost, and unit conversion cost. What would the product cost per unit be in this case? 

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