The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Days of of Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 Production Production. per Period 362 310 310 310 22 16 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)
The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Days of of Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 Production Production. per Period 362 310 310 310 22 16 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19.
Variable manufacturing costs were $1.78 per unit (there are no variable cost variances).
Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decima
places.)
What is the total cost per unit (box of wine) when normal capacity is used?
O $3.45
O $5.81
$6.39
O $7.54
Transcribed Image Text:The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box.
Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019:
Denominator-Level
Capacity Concept
Theoretical Capacity
Practical Capacity
Normal Capacity
Master Budget Capacity
Budgeted Fixed
Period
Manufacturing
Overhead per
$5,000,000
$5,000,000
$5,000,000
$5,000,000
per
Period
362
Production Production
310
Days of
310
310
of
22
16.
16
Hours
16
Boxes
per Day per Hour
300
250
175
200
Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19.
Variable manufacturing costs were $1.78 per unit (there are no variable cost variances).
Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal
places)
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