Homework SourseOlds Inc which produces a single product has provided the fo
Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:
$226 per unit
$268 per unit
$232 per unit
$356 per unit
| Olds Inc., which produces a single product, has provided the following data for its most recent month of operations: |
Solution
Answer
A
Fixed manufacturing Overhead
349200
B
Fixed Selling & Administrative expenses
727500
C=A+B
Total Fixed expenses
1076700
D
Total units
9700
E=C/D
Fixed expenses per unit
111
Variable costs per unit
F
Direct material
121
G
Direct labour
105
H
Variable manufacturing Overhead
6
I
Variable Selling & Administrative Overhead
13
J=F+G+H+I
Variable cost per unit
245
E+J
Total Cost per unit
356
Hence, the correct answer is OPTION-D which is $356 per unit (as calculated above)
| A | Fixed manufacturing Overhead | 349200 |
| B | Fixed Selling & Administrative expenses | 727500 |
| C=A+B | Total Fixed expenses | 1076700 |
| D | Total units | 9700 |
| E=C/D | Fixed expenses per unit | 111 |
| Variable costs per unit | ||
| F | Direct material | 121 |
| G | Direct labour | 105 |
| H | Variable manufacturing Overhead | 6 |
| I | Variable Selling & Administrative Overhead | 13 |
| J=F+G+H+I | Variable cost per unit | 245 |
| E+J | Total Cost per unit | 356 |
