Bobs Bistro produces party-sized hagia sandwiches. For next year, Bobs Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials $200,000 Direct labor 100,000 Variable overhead 60,000 Fixed overhead 260,000 Required:

If required, round your answers to the nearest cent.

1. Calculate the prime cost per unit. $fill in the blank 1 per unit

2. Calculate the conversion cost per unit. $fill in the blank 2 per unit

3. Calculate the total variable cost per unit. $fill in the blank 3 per unit

4. Calculate the total product (manufacturing) cost per unit. $fill in the blank 4 per unit

5. What if the number of units decreased to 40,000 and all unit variable costs stayed the same? indicate the impact on the following costs.

a. Total direct materials

decreases by does not changeincreases by

less than 20%20%more than 20%no change

b. Total direct labor

does not change decreases byincreases by

less than 20% 20% more than 20% no change

c. Total variable overhead

does not changedecreases byincreases by

less than 20%20%more than 20%no change

d. Total fixed overhead

does not changedecreases byincreases by

less than 20%20%more than 20%no change

e. Unit prime cost

does not changedecreases byincreases by

less than 20%20%more than 20%no change

f. Unit conversion cost

does not changedecreases byincreases by

less than 20%20%more than 20%no change

What would the product cost per unit be in this case? $fill in the blank 17 per unit

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