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vesna_86 [32]
3 years ago
12

Prairie, Inc. produces a single product. It has an annual capacity of 10,000 units, but currently uses only 80% of it. Each unit

is sold for $50 and requires direct material worth $30 and direct labor worth $5. Manufacturing overhead cost is $10 per unit of which 70% is variable. What is Prairie's total incremental cost incurred to produce each unit?
Business
1 answer:
ivanzaharov [21]3 years ago
3 0

Answer:

Variable cost= $42

Explanation:

Giving the following information:

Each unit is sold for $50

Direct material worth $30

Direct labor worth $5.

Manufacturing overhead cost is $10 per unit of which 70% is variable.

The incremental cost is the variable cost (there is available capacity)

Variable cost= direct material + direct labor + variable manufacturing overhead = 30 + 5 + (10*0.7)= $42

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3 0
2 years ago
1- The Lo Tech Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant
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3 years ago
"Albert applied for a consumer durables loan at Horizon Bank and had to provide his personal information in the loan application
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Forms used by the medical practice should be updated __________ and the codes verified with the current year's diagnostic and pr
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8 0
3 years ago
During the current year, Elk Company incurred the following direct labor costs: January $40,000 and February $60,000. Elk uses a
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Answer:

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