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Current Attempt in Progress Kevin is struggling with whether to use the practical capacity level or the normal capacity level for the company's budgeted quantity
Current Attempt in Progress Kevin is struggling with whether to use the practical capacity level or the normal capacity level for the company's budgeted quantity o units. His company has always used the practical capacity level, but he believes the normal level would more accurately reflect a realistic sales volume and production level of the company's travel bags. Kevin notes the following budgeted information: variable manufacturing costs, $19 per unit; fixed-MOH costs, $48,000; practical capacity, 9,600 units; and normal capacity, 7,680 units. If actual production and sales both end at 8,160 units, what would total product cost be per unit for each capacity level? (Round answers to 2 decimal places, e.g. 15.25.) If selling prices are 160% of product cost, what selling prices would be set for each capacity level? (Round answers to 2 decimal places, eg. 15.25.)
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