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b) Greek Manufacturing Company produces and sells a line of product that are sold usually all year round. The company has a maximum production
b) Greek Manufacturing Company produces and sells a line of product that are sold usually all year round. The company has a maximum production capacity of 100,000 units per year. Operating at normal capacity, the business earned Operating Income of $600,000 in 2020. The following cost data has been prepared for the year ended December 31, 2020. Selling price per unit........ Production Costs: $50.00 Direct Materials $10.00 Direct Labour. $8.00 Variable Manufacturing Overhead $7.00 Fixed Manufacturing Overhead........ $450,000 Fixed Selling & Administrative Expenses................. $300,000 Variable selling expense per unit $10.00 Calculate: i) the variable production cost per unit ii) the total production cost per unit iii) The total variable cost per unit iv) Total Fixed Costs (2% marks)
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