Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Earhart Instruments, Inc., produces calculators. For next year, Earhart predicts that 50,000 units will be produced, with the following total costs: Direct materials $130,000 Direct

Earhart Instruments, Inc., produces calculators. For next year, Earhart predicts that 50,000 units will be produced, with the following total costs:

Direct materials

$130,000

Direct labor

50,000

Variable overhead

25,000

Fixed overhead

220,000

1. Calculate the prime cost per unit. 3.6

2. Calculate the conversion cost per unit. 5.9

3. Calculate the total variable cost per unit. 4.1

4. Calculate the total product (manufacturing) cost per unit. 8.5

5. What if the number of units increased to 55,000 and all unit variable costs stayed the same? Indicate whether the following costs would increase, decrease, or stay the same:

a. Total direct materials

b. Total direct labor

c. Total variable overhead

d. Total fixed overhead

e. Unit prime cost

f. Unit conversion cost

I need part 5 answered please.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions