TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units: Variable production costs: Direct materials Direct labor Variable factory overhead Fixed production costs: Depreciation (equipment) Factory rent Other Total production cost Variable selling & administrative costs Fixed selling & administrative costs Per-Unit Costs $160 190 100 60 88 20 Saved $618 $ 32 per unit $44 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 30 violins at $430 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is: Help Save & B
TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units: Variable production costs: Direct materials Direct labor Variable factory overhead Fixed production costs: Depreciation (equipment) Factory rent Other Total production cost Variable selling & administrative costs Fixed selling & administrative costs Per-Unit Costs $160 190 100 60 88 20 Saved $618 $ 32 per unit $44 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 30 violins at $430 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is: Help Save & B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume that the Violin Division was evaluating whether it would accept a special sales order for 30 violins at $430 per unit.

Transcribed Image Text:TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company
The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units:
Variable production costs:
Direct materials
Direct labor
Variable factory overhead
Fixed production costs:
Depreciation (equipment)
Factory rent
Other
Per-Unit Costs
Saved
$ 160
190
100
60
88
20
Total production cost
$618
Variable selling & administrative costs
$32 per unit
Fixed selling & administrative costs
$44 per unit
Assume that the Violin Division was evaluating whether it would accept a special sales order for 30 violins at $430 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is:
Help Save & B
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