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Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials
Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Required: 2. Calculate the conversion cost per unit. per unit If required, round your answers to the nearest cent. 1. Calculate the prime cost per unit. per unit a. Total direct materials $110,000 3. Calculate the total variable cost per unit. per unit b. Total direct labor 4. Calculate the total product (manufacturing) cost per unit. per unit c. Total variable overhead 80,000 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. d. Total fixed overhead 25,000 260,000 e. Unit prime cost f. Unit conversion cost What would the product cost per unit be in this case? per unit
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