1. If 10,000 units are produced, what is the variable cost per unit? 2. If 18,000 units are produced, what is the variable cost per unit? 3. If 21,000 units are produced, what are the total variable costs?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Rose Company has a relevant range of
production between 10,000 and
25,000 units. The following cost data
represents average cost per unit for
15,000 units of production.
Average Cost per Unit
$12
Direct materials
Direct labor
10
Indirect materials
Fixed manufacturing overhead
Variable manufacturing overhead
Fixed selling and administrative expenses
Variable sales commissions
4
3
8
25
Using the cost data from Rose
Company, answer the following
questions:
1. If 10,000 units are produced, what
is the variable cost per unit?
2. If 18,000 units are produced, what
is the variable cost per unit?
3. If 21,000 units are produced, what
are the total variable costs?
4. If 11,000 units are produced, what
are the total variable costs?
Transcribed Image Text:Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit $12 Direct materials Direct labor 10 Indirect materials Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions 4 3 8 25 Using the cost data from Rose Company, answer the following questions: 1. If 10,000 units are produced, what is the variable cost per unit? 2. If 18,000 units are produced, what is the variable cost per unit? 3. If 21,000 units are produced, what are the total variable costs? 4. If 11,000 units are produced, what are the total variable costs?
5. If 19,000 units are produced, what
are the total manufacturing
overhead costs incurred?
6. If 23,000 units are produced, what
are the total manufacturing
overhead costs incurred?
7. If 19,000 units are produced, what
are the per unit manufacturing
overhead costs incurred?
8. If 25,000 units are produced, what
are the per unit manufacturing
overhead costs incurred?
PLEASE NOTE #1: Costs per unit
dollar amounts will be rounded to
two decimal places and shown
with "$" and commas as needed
(i.e. $12,345.67).
PLEASE NOTE #2: Total costs
dollar amounts will be whole
Transcribed Image Text:5. If 19,000 units are produced, what are the total manufacturing overhead costs incurred? 6. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? 7. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? 8. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). PLEASE NOTE #2: Total costs dollar amounts will be whole
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