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Unile Auto produces and sells an auto part for $60.00 per unit. In 2015, 100,000 parts were produced and 75,000 units were sold. Other information
Unile Auto produces and sells an auto part for $60.00 per unit. In 2015, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes: Direct materials $20.00 per unit Direct manufacturing labor $ 4.00 per unit Variable manufacturing costs $ 1.00 per unit Sales commissions $ 6.00 per part Fixed manufacturing costs $750,000 per year Administrative expenses, all fixed $270,000 per year What is the inventoriable cost per unit using variable costing? $31.00 $24.00 $25.00 $20.00 Premium Company provides the following ABC costing information: Total Costs Activity-cost drivers $200,000 10,000 hours $140,000 4,000,000 lines W Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs $75,000 40,000 accounts 4,000 letters $ 25,000 $440,000 The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A Department B 2,500 hours 4,000 hours 400,000 lines 250,000 lines 10,000 accounts 8,000 accounts 1.200 letters 1.600 letters How much of the total costs will be assigned to Department A? $90,750 $90,250 $90,650 $90,350
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