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The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to elient) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analyais Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 24 320 16,000 20,000 160 18 6. 11 17 2,000 teato

The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to elient) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analyais Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 24 320 16,000 20,000 160 18 6. 11 17 2,000 teato

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 6PA: Product costing and decision analysis for a service company Pleasant Stay Medical Inc. wishes to...
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Calculate the amount for each of the follow (one unit = one test_ if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to client) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analysis Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month %24 320 16,000 20,000 160 18 11 17 2,000 testo Required: Calculate the amount for each of the following (one unit - one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 2,000 Tests 1,250 Tests a. Variable production cost per unit. b. Variable cost per unit c. Full cost per unit. d. Full absorption cost per unit. Prime cost per unit. e. Conversion cost per unit. Contribution margin per unit. Gross margin per unit.
Transcribed Image Text:The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to client) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analysis Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month %24 320 16,000 20,000 160 18 11 17 2,000 testo Required: Calculate the amount for each of the following (one unit - one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 2,000 Tests 1,250 Tests a. Variable production cost per unit. b. Variable cost per unit c. Full cost per unit. d. Full absorption cost per unit. Prime cost per unit. e. Conversion cost per unit. Contribution margin per unit. Gross margin per unit.
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