Question
Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 16,000 units
Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 16,000 units of production. Average Cost per Unit Direct Materials $12 Direct Labor 9 Indirect Materials 2 Fixed manufacturing overhead 5 Variable manufacturing overhead 3 Fixed selling and administrative expenses 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
C. If 21,000 units are produced, what are the total variable costs?
Total variable costs $
D. If 12,000 units are produced, what are the total variable costs?
Total variable costs $
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
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