Standard Costs Labor Materials Total Items per unit 2.00 hrs 1.00 Rate Per Item $ 25.00 $ 70.00 Variable Cost Per Unit Produced $ 50.00 $ 70.00 $ 120.00 During the period, the company produced 1,500 units. The company replaced a significant portion of their workforce with new employees. The labor rate per hour was $23 per hour. The employees used 1.2 material units per product. The unit rate was at the $70 standard and the hours per unit produced was at the standard or 2.0 hours. 

1. What was the total cost of production? Show your work. 2. Quantify the total savings or cost of the change? Show you work. 3. If the product sells at $200 per unit and fixed cost is $80,000, what is operating profit?

 

The company has the following standard costs: Product A Product B Labor Hours per unit 2.00 3.00 Wage paid per hour $ 22.00 $ 30.00 Materials items used per unit 2.00 2.50 Cost per item of material $ 20.00 $ 25.00 Target Selling Price per Product $ 100.00 $ 200.00. 

1. What is the labor cost per unit produced for each product? 2. What is the material cost per unit produced for each product? 3. What is the total cost per unit produced for each product? 4. What is the gross profit dollars and gross profit % per unit for each product? If the company sells 200 units of product A and 50 units of product B: 5. What is the total amount of sales, gross profit $ and gross profit % for the month? 6. If a marketing investment will drive the same amount of dollar sales of each product, which product should they advertise and why?

 

 The company has the following standard costs: Product A Labor Hours 2.50 Wage paid per hour $ 30.00 Materials items used per unit 4.00 Cost per item of material $ 20.00 Target Selling Price per Product $ 200.00 

1. What is the GP % if the product is produced at standard cost? If labor hours are 2.8 and materials used per item are 3.4 and other items are a 2. What is the gross profit % for the product? Show your work and round to one decimal for both questions