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QUESTION 13 Gloria's Decorating produces and sells a mantel clock for $130 per unit. In 2015, 40,000 clocks were produced and 35,000 were sold. Other
QUESTION 13 Gloria's Decorating produces and sells a mantel clock for $130 per unit. In 2015, 40,000 clocks were produced and 35,000 were sold. Other information for the year includes: Direct materials $42 per unit Direct manufacturing labor $9 per unit Variable manufacturing costs $3.50 per unit Sales commissions $14.50 per part Fixed manufacturing costs $63.50 per unit Administrative expenses, all fixed$38.00 per unit What is the inventoriable cost per unit using variable costing? $107.00 $54.50 $51.00 $69.00 QUESTION 14 Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $89,000 126,000 56,000 139,000 $410,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to Piels Corporation for $41 per unit. Assuming there is no other use for the facilities, Schmidt should buy the part, as this would save $16 per unit buy the part, as this would save the company $192,000 make the part, as this would save $14 per unit make the part, as this would save $16 per unit
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