Ford Company manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows: Direct materials $20.00 Direct labor 15.00 Variable factory overhead 16.00 Fixed factory overhead 15.00 Total costs $66.00 The fixed factory overhead costs are unavoidable. Assuming no other use for the facilities, what is the highest price that Ford Company should be willing to pay for the part? O$35 $51 $45 $41

Ford Company manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows: Direct materials $20.00 Direct labor 15.00 Variable factory overhead 16.00 Fixed factory overhead 15.00 Total costs $66.00 The fixed factory overhead costs are unavoidable. Assuming no other use for the facilities, what is the highest price that Ford Company should be willing to pay for the part? O$35 $51 $45 $41

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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