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Klio2033 [76]
3 years ago
8

Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $

55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E?
Business
2 answers:
Viefleur [7K]3 years ago
8 0

Answer:

$85

Explanation:

Ortiz Co.

<u>Before</u>

Direct Materials: $55,000

Direct Labour: $160,000

Variable Overhead: $75,000

Fixed Overhead: $175,000

Total cost = $465,000

Cost per unit = Total cost/units produced = $465,000/5,000=$93

<u>After</u>

Direct Material: $55,000

Direct Labour: $160,000

Variable Overhead: $75,000

Fixed Overhead: ($175,000-$40,000)=$135,000

Total cost = $425,000

Cost per unit = Total cost/units produced = $85

Aleksandr-060686 [28]3 years ago
4 0

Answer:

The relevant cost per unit is USD 93/-.

Explanation:

A) Total Cost= Direct Material+ Direct Labor+ Variable overhead+ Fixed Over Head

T.C= 55,000+160,000+75,000+175,000= 465,000/-

B) Unit Price= T.C/Units

U.P= 465,000/5000

U.P= USD 93/-

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5 0
2 years ago
Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours, the other is a combina
Eddi Din [679]

Answer:

d) $2,000,000 $990,000

Explanation:

The computation is shown below:

Unit variable cost pool is

= Budgeted cost ÷ Budgeted machine hours

= $1,600,000 ÷ 360,000

=$ 4.444 per machine hour

And,

Batch-level cost pool = Budgeted cost ÷ Budgeted number of setups

= $900,000 ÷ 3000

= $ 300 per setup

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3 0
3 years ago
Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $31,000 and variable exp
Artist 52 [7]

Answer:

a.$75,508

Explanation:

Newham Corporation

Break Even Sales = Fixed Expenses/ 1- (Variable Expenses/ Sales)

We combined the Break Even Sales by adding the sales of the two products and the variable expenses of the two products.

Break Even Sales =$46,060/1-($10,780+$18,470/$31,000+ $44,000)

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Break Even Sales = $75,508.19

6 0
3 years ago
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