A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: $60,000.00; direct labor: $50,000.00; indirect labor: $25,000.00 and other fixed costs: $35,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 1,400 units is: a) $133.33 b) $142.84 c) $131.42 d) $152.86
A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: $60,000.00; direct labor: $50,000.00; indirect labor: $25,000.00 and other fixed costs: $35,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 1,400 units is: a) $133.33 b) $142.84 c) $131.42 d) $152.86
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2EA: Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2...
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A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: $60,000.00; direct labor: $50,000.00; indirect labor: $25,000.00 and other fixed costs: $35,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 1,400 units is:
a) $133.33
b) $142.84
c) $131.42
d) $152.86
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