Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents 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 2           Fixed selling and administrative expenses 8           Variable sales commissions 25           Using the cost data from Rose Company, answer the following questions: A. If 9,000 units are produced, what is the variable cost per unit?

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 9,000 and 25,000 units. The following cost data represents 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 2          
Fixed selling and administrative expenses 8          
Variable sales commissions 25          

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

A. If 9,000 units are produced, what is the variable cost per unit?

Variable cost per unit 

B. If 18,000 units are produced, what is the variable cost per unit?

Variable cost per unit 

C. If 22,000 units are produced, what are the total variable costs?

Total variable costs 

D. If 12,000 units are produced, what are the total variable costs?

Total variable costs 

E. If 20,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs 

F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs

G. If 20,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit 

H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit

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