recent month of opera 11. Banet In.,whick produces a single product, has provide
ID: 2414182 • Letter: R
Question
recent month of opera 11. Banet In.,whick produces a single product, has provided the follewing data for its most r Nunber of units produced Variabit costs per uni. Direct naterials Direct labor Variable manufacturing overhead Variatle selling and administrative expense Fixed costs Fixed manufacturing overhead Fixed selling and alministerative expense $448,000 There were no beginning or ending inventonies. The absorption costing unit poduct cost was: A. $125 per unit B. $246 per unit C. $117 per unit D. $183 per unt 12. Moscio Enterprises, Inc, produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $37.20 per unit. The company's monthly fixed expense is $356040. Assume the company's tanget profit is S15,000. The doillar sales to attain that target profit is closest toc A.$371,040 B $537,739 C $701,894 D. SI,196,903 13. A manufacturing company that prodases a single product has provided the folowing data concerning its most recent month of operations Selling price $138 t'nits in begianing inveatory Units produeed Unts sold 4,000 3,700 300 Units in cading imentory Vaniable costs por unit Direct materials Direct labor 538 $51 S6 Variable manufiacturing overhcad Varilee7 Fixed costs Fixed manufacturing overhead 100.000 $23,900 What is the total period cost for the month under variable costing? A. $151,800 B. $51,800 C. $100,000 D. $125,900Explanation / Answer
11. Answer is D
Product cost is the cost incurred the cost of manufacture of the product. This incudes the cost of direct material, direct labor and manufacturing overhead.
There are two methods of calculatig the product cost.
1. Under variable costing, only the variable manufacturing overhead cost is included in the product cost.
2. Under the absorption costing, the total manufacturing overhead (variable + fixed) is included in the product cost.
Working:
12. Answer is B
Working:
13. Answer is D
Period costs are the costs which are fixed over a period , and do not vary with the activity level.
The fixed expenses which donot vary with the level of activity and are fixed for a period, are classified as period costs.
In the given question, the period costs are fixed manufacturing and fixed selling and administrative expenses.
Therefore the period costs are $125,900 ($100,000 + $25,900)
Per unit Direct material 40 Direct labor 77 Variable manufacturing overhead 8 Fixed manufacturing overhead ($464,000 / 8,000) 58 Product cost 183Related Questions
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