Product Costs Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials $120,000 Direct labor 60,000 Variable overhead 25,000 Fixed overhead 220,000 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per unit. $ per unit 2. Calculate the conversion cost per unit. $ per unit 3. Calculate the total variable cost per unit. $ per unit
Product Costs
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs:
| Direct materials | $120,000 |
| Direct labor | 60,000 |
| Variable overhead | 25,000 |
| Fixed overhead | 220,000 |
Required:
If required, round your answers to the nearest cent.
1. Calculate the prime cost per unit.
$ per unit
2. Calculate the conversion cost per unit.
$ per unit
3. Calculate the total variable cost per unit.
$ per unit
4. Calculate the total product (manufacturing) cost per unit.
$ per unit
5. What if the number of units increased to 55,000 and all unit variable costs stayed the same? indicate the impact on the following costs.
a. Total direct materials increases by 10%
b. Total direct labor increases by 10%
c. Total variable overhead increases by 10%
d. Total fixed overhead does not change no change
e. Unit prime cost does not change no change
f. Unit conversion cost decreases by less than 10%
What would the product cost per unit be in this case?
$ per unit
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
