What is variable manufacturing cost

Asked by maham237 @ in Business viewed by 346 People

If variable manufacturing costs are $16 per unit and total fixed manufacturing costs are $401,500, what is the manufacturing cost per unit a.$5,500 units are manufactured and the company uses the variable costing concept?b.$7,300 units are manufactured and the company uses the variable costing concept? $ c.$5,500 units are manufactured and the company uses the absorption costing concept? $ d.$7,300 units are manufactured and the company uses the absorption costing concept? $

Answered by maham237 @


Answer:

a. $16

b. $16

c. $89

d. $71

Explanation:

Variable Product Cost per Unit = Direct Labor + Direct Materials + Variable Overheads

Absoption Product Cost per Unit = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

manufacturing cost per unit

(a) 5,500 units are manufactured and the company uses the variable costing concept

manufacturing cost per unit = Variable Costs

=$16

(a) 7,300 units are manufactured and the company uses the variable costing concept

manufacturing cost per unit = Variable Costs

=$16

(c) 5,500 units are manufactured and the company uses the absorption costing concept

manufacturing cost per unit = Variable Costs + Fixed Costs

=$16 + ($401,500/5,500)

= $16 + $73

= $89

(d) 7,300 units are manufactured and the company uses the absorption costing concept

manufacturing cost per unit = Variable Costs + Fixed Costs

=$16 + ($401,500/7,300)

= $16 + $55

= $71


Similar Questions

How much does it cost to manufacture a cardboard box

Asked by admin @ in Mathematics viewed by 280 persons

HELP !! Calculate the cost of manufacturing a standard cereal box if cardboard costs $0.05 per square inch. Length- 8 inches Width- 3 inches Height- 11 inches Surface area- I …

Compute the total manufacturing overhead costs allocated to job 494

Asked by admin @ in Business viewed by 339 persons

The Conrad Company uses a normal job-costing system at its New Brunswick plant. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead …

How much does it cost to manufacture a board game

Asked by admin @ in Mathematics viewed by 279 persons

Suppose you invest $10,410 in equipment to manufacture a new board game. Each game costs $2.65 to manufacture and sells for $20. How many video games must you make and …

Under a job order costing system the product being manufactured

Asked by admin @ in Business viewed by 301 persons

Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would …

Fixed manufacturing overhead costs are expensed as units are sold

Asked by admin @ in Business viewed by 308 persons

Explain the difference between variable costing and absorption costing income statements. Provide income statements in both variable costing and absorption costing formats for an initial period and its successive period …

Variable costs are described by which of the following statements

Asked by admin @ in Business viewed by 352 persons

Which of the following statements are true? In absorption costing, fixed manufacturing costs are applied to production in large chunks, rather than on a per unit basis. Changes in activity …

Within the relevant range variable costs can be expected to

Asked by admin @ in Business viewed by 296 persons

10) Within the relevant range, variable costs can be expected to: A) vary in total in direct proportion to changes in the activity level. B) remain constant in total as …

Calculate the variable costs per unit within the relevant range

Asked by admin @ in Business viewed by 297 persons

George Company has a relevant range of​ 150,000 units to​ 400,000 units. The company has total fixed costs of​ $527,000. Total fixed and variable costs are​ $622,500 at a production …

Prime cost plus variable overhead is known as

Asked by admin @ in Accountancy viewed by 596 persons

Prime cost plus works overhead is known as

Overcoming fixed mindset: a step-by-step guide to cultivating a growth mindset

Asked by wiki @ in Health viewed by 1262 persons

Which of the following would best complete this list?

Asked by wiki @ in Social Studies viewed by 727 persons

What had the king decided to do before he saw the spider

Asked by vanshika149 @ in English viewed by 1120 persons

Describe the karez in your own words

Asked by rajesh064 @ in English viewed by 1286 persons

What is 8 + (x + 5)?

Asked by jaylord7 @ in Mathematics viewed by 1077 persons

Take any three non-collinear points a b c and draw triangle a,b,c. through each vertex of the triangle draw a line parallel to the opposite side using ruler and compass

Asked by wiki @ in Mathematics viewed by 1476 persons

Most viewed questions in Business

Foolproof module 9 test answers

Asked by maham237 @ in Business viewed by 3323 persons

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ in Business viewed by 2743 persons

Interest rates are expressed as a percentage of

Asked by maham237 @ in Business viewed by 2112 persons

How to enhance knowledge regarding environmental factors through capsim?

Asked by wiki @ in Business viewed by 1823 persons

Match the job titles with the career clusters.

Asked by maham237 @ in Business viewed by 1484 persons

A company that allows you to license software

Asked by maham237 @ in Business viewed by 1297 persons

Lupe is ready to open a checking account

Asked by maham237 @ in Business viewed by 1290 persons

Mays and mccovey are beer brewing companies

Asked by maham237 @ in Business viewed by 1217 persons

What must be marked on ready to eat bags phfs

Asked by maham237 @ in Business viewed by 1175 persons

Coq six sigma

Asked by maham237 @ in Business viewed by 1141 persons

Henry ford was the first entrepreneur to implement which strategy

Asked by maham237 @ in Business viewed by 1086 persons

Your company was recently served with a lawsuit

Asked by maham237 @ in Business viewed by 1076 persons

Case study starting a business project schedules and curves edgenuity

Asked by maham237 @ in Business viewed by 1068 persons

Which two of the four cs of credit have to do with earning potential and available cash?

Asked by wiki @ in Business viewed by 985 persons

The total annual expenditures on advertising in the united states

Asked by maham237 @ in Business viewed by 973 persons