The following scenario relates to 5 questions.Bear Co has developed a new model of television. The estimated labour time for thefirst unit is 12 hours but a learning curve of 75% is expected to apply for the first eightunits producedNote: The learning index for a 75% learning curve is -0.415.Overhead production costs must be estimated based on a previous model, theLeonardo, that was made by Bear Co. Production quantities and total overhead costsfor the last four months of production of the Leonardo were as follows:MonthOutputTotal overhead cost(units)$September1,800278,200October2,000310,000November1,700252,900December200,0001,000You have been asked to estimate the variable overhead cost per unit of the new television by assumingthat it will be the same as for the Leonardo, using the information provided for the last four months of itsmanufacture, and applying a 6% inflation rate.What is the variable cost per unit using the high-low method (to two decimal places)?← Previous Navi

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What is the variable cost per unit using the high-low method (to two decimal places)? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: 1 2 3 Data 4 Sales Variable costs: 5 67 00 8 A Chapter 1: Applying Excel 9 10 11 Cost of goods sold Variable selling Variable administrative Fixed costs: Fixed selling Fixed administrative $ $ $ $ $ $ B 32,000 16,000 1,600 1,400 2,500 1,500
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