A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: $60,000.00; direct labor: $50,000.00; indirect labor: $25,000.00 and other fixed costs: $35,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 1,400 units is: a) $133.33 b) $142.84 c) $131.42 d) $152.86

A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: $60,000.00; direct labor: $50,000.00; indirect labor: $25,000.00 and other fixed costs: $35,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 1,400 units is: a) $133.33 b) $142.84 c) $131.42 d) $152.86

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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