Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for sales to regularcustomers:Direct materials$53 Direct manufacturing labor10 Variable manufacturing overhead12 Fixed manufacturing overhead14 Total manufacturing costs$89 The plant has capacity for 6,000 bicycles and is considering expanding production to 5,000 bicycles. What is the per unit cost of producing 5,000 bicycles?A.$91.80 per unitB.$69.80 per unitC.$86.20 per unitD.$111.25 per unit

The cost per unit is calculated as total cost of production divided by number of units.

Answered: Manufacturing currently produces 4,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...

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Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for sales to regularcustomers:

Direct materials	$53
Direct manufacturing labor	10
Variable manufacturing overhead	12
Fixed manufacturing overhead	14
Total manufacturing costs	$89

The plant has capacity for 6,000 bicycles and is considering expanding production to 5,000 bicycles. What is the per unit cost of producing 5,000 bicycles?

$91.80 per unit

$69.80 per unit

$86.20 per unit

$111.25 per unit

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