Question
The following data apply to the provision of psychological testing services. Sales price per unit (1 unit = 1 test plus feedback to client) $
| The following data apply to the provision of psychological testing services. |
| Sales price per unit (1 unit = 1 test plus feedback to client) | $ | 300 | |
| Fixed costs (per month): | |||
| Selling and administration | 20,000 | ||
| Production overhead (e.g., rent of testing facilities) | 30,000 | ||
| Variable costs (per test): | |||
| Labor for oversight and feedback | 120 | ||
| Outsourced test analysis | 20 | ||
| Materials used in testing | 5 | ||
| Production overhead | 10 | ||
| Selling and administration (e.g., scheduling and billing) | 15 | ||
| Number of tests per month | 1,000 | tests | |
| Required: |
| Calculate the amount for each of the following (one unit = one test) if the number of tests is 1000 per month. Also calculate if the number of tests decreases to 800 per month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
| 1000 Tests | 800 Tests | ||
| a. | Variable production cost per unit. | $ | $ |
| b. | Variable cost per unit. | $ | $ |
| c. | Full cost per unit. | $ | $ |
| d. | Full absorption cost per unit. | $ | $ |
| e. | Prime cost per unit. | $ | $ |
| f. | Conversion cost per unit. | $ | $ |
| g. | Contribution margin per unit. | $ | $ |
| h. | Gross margin per unit. | $ | $ |
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
1st Edition
0471969117, 978-0471969112
