Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 1, Problem 4F15
To determine
Variable Cost per unit produced included the variable cost incurred for the production of goods. However, the Variable cost per unit sold is the sum total of variable cost of production and Selling and administrative expense.
The Variable cost per unit of goods produced and goods sold within the relevant range of activity need to be determined.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Bambam Inc. produces BingBong products. Cost data are as follows: Fixed selling cost of 200; variable product cost of 5 per unit; variable selling cost of 2 per unit and fixed overhead cost of 500. If the company will produce 500 units, what is the total cost?
Using the costs data from Rose Company, answer the following questions:
A. If 15,000 units are produced, what is the variable cost per unit?
B. If 28,000 units are produced, what is the variable cost per unit?
C. If 21,000 units are produced, what are the total variable costs?
Asco Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. please see image attached.
Required:
1: If 25,000 units are produced, what is the variable cost per unit?
2: If 16,000 units are produced, what is the variable cost per unit?
3: Comment briefly on your answers to (a) and (b).
4: If 18,000 units are produced, what are the total variable costs?
Chapter 1 Solutions
Introduction To Managerial Accounting
Ch. 1 - What are the three major types of product costs in...Ch. 1 - Define the following: (a) Direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - What effect does an increase in the activity level...Ch. 1 - Define the following terms: (a) Costbehavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Managers often assume a strictly linear...Ch. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
Ch. 1 - What is the difference between a traditional...Ch. 1 - Prob. 12QCh. 1 - Define the following terms: differential cost,...Ch. 1 - Only variable costs can be differential costs. Do...Ch. 1 - Prob. 1AECh. 1 - This Excel worksheet form is to be used to...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Prob. 4F15Ch. 1 - Prob. 5F15Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Prob. 8F15Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Martinez Company’s relevant range of production is...Ch. 1 - Prob. 15F15Ch. 1 - Identifying Direct and Indirect Costs Northwest...Ch. 1 - Prob. 2ECh. 1 - Classifying Costs as Product or Period Costs...Ch. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Traditional and Contribution Format Income...Ch. 1 - Direct and Indirect CostsKubin Company’s relevant...Ch. 1 - Product Costs and Period Costs; Variable and Fixed...Ch. 1 - Fixed, Variable, and Mixed Costs Refer to the data...Ch. 1 - Differential Costs and Sunk Costs Refer to the...Ch. 1 - Cost Behavior; Contribution Format Income...Ch. 1 - Product and Period Cost Flows The Devon Motor...Ch. 1 - Prob. 13ECh. 1 - Cost Classification Wollogong Group Ltd. of New...Ch. 1 - Traditional and Contribution Format Income...Ch. 1 - Cost Classifications for Decision Making Warner...Ch. 1 - Classifying Variable and Fixed Costs and Product...Ch. 1 - PROBLEM 1—18 Direct and Indirect Costs; Variable...Ch. 1 - Traditional and Contribution Format Income...Ch. 1 - Variable and Fixed Costs; Subtleties of Direct and...Ch. 1 - Traditional and Contribution Format Income...Ch. 1 - Cost Terminology; Contribution Format Income...Ch. 1 - Cost Classification Listed below are costs found...Ch. 1 - Different Cost Classifications for Different...Ch. 1 - Traditional and Contribution Format Income...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?arrow_forwardSuppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?arrow_forward5.) If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 6.) If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold? 7.) If 12,000 units are sold, what is the variable cost per unit sold? 8.) If 12,500 units are sold, what is the total variable cost per unit sold?arrow_forward
- How much is the price charged per unit if breakeven point is 8,500 units, variable cost per unit is $150, and total fixed costs is $297,500?arrow_forwardSierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %arrow_forwardRose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production.Using the cost data from Rose Company, answer the following questions:A. If 10,000 units are produced, what is the variable cost per unit?B. If 18,000 units are produced, what is the variable cost per unit?C. If 21,000 units are produced, what are the total variable costs?D. If 11,000 units are produced, what are the total variable costs?E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred?H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?arrow_forward
- Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,200 per unit, of which $820 is product cost and $380 is selling and administrative expenses. In addition, the total cost of $1,200 is made up of $680 variable cost and $520 fixed cost. The desired profit is $180 per unit. Determine the markup percentage on total cost.fill in the blank 1 %arrow_forward12.) If 12,500 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 13.) If the selling price is P2,200 per unit, what is the contribution margin per unit sold?arrow_forwardIf variable manufacturing costs are $19 per unit and total fixed manufacturing costs are $220,000, what is the manufacturing cost per unit if: a. 4,000 units are manufactured and the company uses the variable costing concept? $4 b. 5,500 units are manufactured and the company uses the variable costing concept? c. 4,000 units are manufactured and the company uses the absorption costing concept? d. 5,500 units are manufactured and the company uses the absorption costing concept?arrow_forward
- Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %arrow_forwardIf 8,000 units are sold, what is the variable cost per unit sold? If 12,500 units are sold, what is the variable cost per unit sold? If 8,000 units are sold, what is the total amount of variable costs related to the units sold?arrow_forwardIf 12,500 units are sold, what is the total amount of variable costs related to the units sold? If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY