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. Rose Company data Expense Average Cost per Unit Direct materials Direct labor Indirect materials $12 10 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 4 3 8 Variable sales commissions 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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 6
1 pts
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.
Rose Company data
Expense
Average Cost per Unit
Direct materials
$12
Direct labor
Indirect materials
10
2
Fixed manufacturing overhead
Variable manufacturing overhead
Fixed selling and administrative expenses
3
8
Variable sales commissions
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?
D. If 11,000 units are produced, what are the total variable costs?
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred?
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Transcribed Image Text:Question 6 1 pts 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. Rose Company data Expense Average Cost per Unit Direct materials $12 Direct labor Indirect materials 10 2 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 3 8 Variable sales commissions 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? D. If 11,000 units are produced, what are the total variable costs? E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Expert Solution
Step 1

Answer a:

Variable cost per unit:Variable cost per unit=Direct Materials+Direct Labor+Variable MOH+Variable Sales commissions=$12+$10+$3+$25=$50 per unit

 

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