Question
John's Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:
John's Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows: |
Amount Per Unit | |||
Direct materials | $ | 5.40 | |
Direct labor | $ | 2.90 | |
Variable manufacturing overhead | $ | 1.60 | |
Fixed manufacturing overhead | $ | 3.40 | |
Fixed selling expense | $ | 2.40 | |
Fixed administrative expense | $ | 2.10 | |
Sales commissions | $ | 1.10 | |
Variable administrative expense | $ | 0.55 | |
b.) If 14,500 units are sold, what is the variable cost per unit sold?
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