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QUESTION 3 The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as
QUESTION 3 The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Company data to produce and sell a product at a rate of 12,000 units per month. Cost Item Estimated Unit Cost Direct material $32 Direct labor $20 Variable manufacturing overhead $15 Fixed manufacturing overhead $6 Variable selling expenses $3 Fixed selling expenses $4 What are the estimated total manufacturing costs per unit? a. $73 b.$32 OC. $67 d. $52 QUESTION 4 Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year. The following data will assist management in deciding which product should be selected. Makwa's fixed overhead includes rent and utilities, equipment depreciation, and supervisory salaries. Selling and administrative expenses are not allocated to individual products. Makwa Industries' new product data. Type of Cost Product L Product W $44 Direct materials Machining labor ($12/hour) Assembly labor ($10/hour) Variable overhead ($8/hour) Fixed overhead ($4/hour) Total Manufacturing Cost Estimated selling price per unit Actual research and development costs Estimated advertising costs $18 $30 $36 $18 $146 $170 $240,000 $500,000 $36 $15 $10 $18 $9 $88 $100 $175,000 $350,000 For Makwa's Product L, the costs for direct material, machining labor, and assembly labor represent which type of cost? a. Conversion costs b. Period costs C. Prime costs Od. Common costs
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