Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents the average cost per unit for 15,000 units of production.   Average Cost per Unit Direct Materials $13           Direct Labor 9           Indirect Materials 2           Fixed manufacturing overhead 5           Variable manufacturing overhead 3           Fixed selling and administrative expenses 8           Variable sales commissions 25           Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
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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 the average cost per unit for 15,000 units of production.

  Average Cost
per Unit
Direct Materials $13          
Direct Labor 9          
Indirect Materials 2          
Fixed manufacturing overhead 5          
Variable manufacturing overhead 3          
Fixed selling and administrative expenses 8          
Variable sales commissions 25          

Using the cost data from Rose Company, answer the following questions:

A. If 10,000 units are produced, what is the variable cost per unit?

Variable cost per unit $

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