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TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company The following cost information pertained to the Violin Division of Stringing Music
TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units: Per-Unit Costs $ 300 330 240 Variable production costs: Direct materials Direct labor Variable factory overhead Fixed production costs: Depreciation (equipment) Factory rent Other Total production cost Variable selling & administrative costs Fixed selling & administrative costs 200 228 48 $ 1,346 $ 60 per unit $ 72 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 100 violins at $570 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is: Multiple Choice $870. $918. O $570. O $942 O O $930
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