Answer:
$7.05
Explanation:
Given that
Direct labor = $3.50 per unit
Direct material = $1.25 per unit
Variable overhead = $41,400
Total fixed overhead = $150,000
Produced units = 18,000
The computation of total product cost per unit under variable costing is shown below:-
Total Variable overhead = Variable overhead ÷ Produced units
= $41,400 ÷ $18,000
= $2.3
Total product cost per unit = Direct labor + Direct material + Total variable overhead
= $3.50 + $1.25 + $2.3
= $7.05
Answer: $10,700
Explanation:
The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,
= Uncollectible Amount written off + Closing Balance - Opening Balance.
Now the balances are as follows,
Opening Balance for Year 2 = 4,500
Closing Balance for Year 2 = 6,800
Uncollectible Amount written off during Year 2 = 8,400
Calculating therefore,
= 6,800 + 8,400 - 4,500
= $10,700
Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.
Answer:
$75 per case
Explanation:
Required: Selling Price per case
Sales – Variable cost – Fixed cost = Target desired profit
Sales = 800000 case x Selling Price (SP)
Variable cost = (800000 case x $40) + (800000 x SP x 25%)
Putting into equation:
Sales – Variable cost – Fixed cost = Target desired profit
(800000 x SP) – [(800000 x 40) + (800000 x SP x 25%)] - $8000000 = $ 5000000
>800000SP – (32000000 + 200000SP) – 8000000 = 5000000
>800000SP – 32000000 – 200000SP – 8000000 = 5000000
>800000SP – 200000SP = 5000000 + 8000000 + 32000000
>600000SP = 45000000
>SP = 45000000 / 600000
>SP = $ 75
