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jekas [21]
3 years ago
7

A company had the following unit costs when 9,000 units were produced: Direct labor at $7.25 per unit; Direct material at $8.00

per unit; Variable overhead at $5.50 per unit; Fixed overhead at ($67,500/9,000 units) $7.50 per unit; and a Total production cost of $28.25 per unit. Under Absorption Costing, what is the total production cost per unit if 25,000 units had been produced?
A. $28.25

B. $23.45

C. $26.25

D. $20.75

E. $15.25
Business
1 answer:
Svetradugi [14.3K]3 years ago
5 0

Answer:

A : $28.25 is the total production cost per unit under Absorption Costing.

Explanation:

The absorption costing method is a costing method that is applied in evaluating inventory which not only covers the cost of materials and labor but including both variable and fixed manufacturing overhead costs also.

Under the absorption costing, the unit product cost is calculated as follows:

<em>Total production cost per unit = Direct materials + Direct labor + Variable overhead + Fixed manufacturing overhead allocated</em>

Total production cost per unit = 8.00 + 7.25 + 5.50 + 7.50

                                                  = $28.25

$28.25 is the total production cost per unit under Absorption Costing.

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A paper company is opening a new branch. In addition to providing the new branch manager and employees with handbooks detailing
lesya [120]

Answer:

The correct answer is the option A: True.

Explanation:

To begin with, it is true that in the scenario presented the<u><em> handbooks</em></u> will transfer explicit knowledge because in them the new employees will find all the information needed in order to understand better their positions and the daily operations that they would have to manage, while in the other hand the <u><em>experienced personnel</em></u> will ensure the acquisition of tacit knowledge due to the fact that the tacit knowlegde is the one that it is not written but the people understand it any way by heart or by experienced and therefore that they will be the ones in transfer it.

3 0
3 years ago
Which technique used to control Inventory costs involves the process of classifying Inventory into three grades, according to th
adelina 88 [10]

Answer:

I believe its the ABC

Explanation:

i looked it up tbh

3 0
3 years ago
Read 2 more answers
Ardel Co. budgeted to sell 218,000 units of Zbox in September. Production of one unit of Zbox requires two pounds of aluminum an
FromTheMoon [43]

Answer:

207,000

Explanation:

Data provided

Sold units = 218,000

Ending inventory = 13,000

Opening units = 24,000

The computation of units during September is shown below:-

Number of units manufactured during the year = Sold units + Ending inventory - Opening units

= 218,000 + 13,000 - 24,000

= 231,000 - 24,000

= 207,000

Therefore for computing the number of units manufactured during the year we simply applied the above formula.

6 0
4 years ago
Consider this case: Last year, Jackson Tires reported net sales of $80,000,000 and total operating costs (including depreciation
Burka [1]

Answer:

<em>Value added:</em> 8,450,000

Explanation:

net sales                  80,000,000

operating cost:     <u> (52,000,000)  </u>

EBT                          28,000,000

tax expense:

28,000,000 x 40%<u>  (11,200,000)  </u>

Net income              16,800,000

<u>Assets: </u>83,500,000

cost of capital: 83,500,000 x 10%  = 8,350,000

<em></em>

<em>Value added:</em>

16,800,000 - 8,350,000 = 8,450,000

6 0
3 years ago
Assume that in a traditional costing system that all the indirect costs are allocated based on direct materials. Calculate the d
Afina-wow [57]

Answer:

The question is missing the direct and indirect costs, however I will let you know how to calculate.

The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.

The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.

Explanation:

The question is missing the direct and indirect costs, however I will let you know how to calculate.

The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.

The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.

Follow this for all the cost heads provided.

6 0
3 years ago
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