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2 years ago

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Assume a company had the following production costs: Direct labor $ 2 per unit Direct material $ 3 per unit Variable overhead $

4 per unit Total variable $ 9 per unit Fixed overhead ($50,000/10,000 units) $ 5 per unit Total production cost $ 14 per unit Under absorption costing, the total product cost per unit when 4,000 units are produced would be $22.50. True or False True False

1 answer:

Mamont248 [21]2 years ago

3 0

Answer:

Total production cost $ 14 per unit Under absorption costing True

The total product cost per unit when 4,000 units are produced would be $22.50 False

Explanation:

Direct labor $ 2 per unit

Direct material $ 3 per unit

Variable overhead $ 4 per unit

Total variable $ 9 per unit

Fixed overhead ($50,000/10,000 units) $ 5 per unit

Total production cost $ 14

Production Costs involve the fixed costs under absorption Costing. So the total Product cost under absorption costing is $ 14.

When 4,000 units are produced the production costs are as follows

Absorption Costing: 4,000 * 14= $ 56,000

Variable Costing : 4000 * 9= $ 36,000

So the second statement is false.

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The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials

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2 years ago

You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales po

balu736 [363]

Answer:

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Explanation:

Given that:

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So; in order to achieve that ; we consider the scenario of an Oligopoly market by using the markup formula for homogeneous product Cournot Oligopoly which can be represented as:

$P = (\dfrac{n*E}{1+ n*E})*MC$

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2 years ago

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