Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit Direct Materials $13 Direct Labor 10 Indirect Materials Fixed manufacturing overhead 4 Variable manufacturing overhead Fixed selling and administrative expenses 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 9,000 units are produced, what is the variable cost per unit? Variable cost per unit $ B. If 17,000 units are produced, what is the variable cost per unit? Variable cost per unit $ C. If 22,000 units are produced, what are the total variable costs? Total variable costs $
Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit Direct Materials $13 Direct Labor 10 Indirect Materials Fixed manufacturing overhead 4 Variable manufacturing overhead Fixed selling and administrative expenses 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 9,000 units are produced, what is the variable cost per unit? Variable cost per unit $ B. If 17,000 units are produced, what is the variable cost per unit? Variable cost per unit $ C. If 22,000 units are produced, what are the total variable costs? Total variable costs $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Rose Company has a relevant range of production between 9,000 and 25,000 units. The
following cost data represents average cost per unit for 15,000 units of production.
Average Cost
per Unit
Direct Materials
$13
Direct Labor
10
Indirect Materials
1
Fixed manufacturing overhead
4
Variable manufacturing overhead
Fixed selling and administrative expenses
8
Variable sales commissions
25
Using the cost data from Rose Company, answer the following questions:
A. If 9,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
C. If 22,000 units are produced, what are the total variable costs?
Total variable costs $
D. If 12,000 units are produced, what are the total variable costs?
Total variable costs $
E. If 19,000 units are produced, what are the total manufacturing overhead costs
incurred?
Total manufacturing overhead costs $
F. If 23,000 units are produced, what are the total manufacturing overhead costs
incurred?
Total manufacturing overhead costs $
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs
incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs
incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $

Transcribed Image Text:Wachowski Company reported the following cost data for the year
2017.
Factory maintenance costs
$90,000
Direct labor, wages
352,000
Direct labor, health insurance
32,000
Indirect labor, health insurance
16,000
Health insurance for production supervisor
6,500
Administrative costs
54,000
Rental of office space for administrative staff
18,500
Sales commissions
52,000
Direct material
1,220,000
Indirect materials
633,000
Advertising expense
39,000
Depreciation on factory building
62,000
Indirect labor, wages
70,000
Production supervisor's salary
33,000
Use the above cost data to complete the table below.
Total prime costs
$4
Total manufacturing overhead costs $
Total product costs
Total period costs
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