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Gennadij [26K]
3 years ago
6

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its aver

age costs per unit are as follows: Average Cost per Unit Direct materials $ 6.60 Direct labor $ 3.65 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.80 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 0.50 Variable administrative expense $ 0.45 If 4,000 units are sold, the variable cost per unit sold is closest to:
Business
1 answer:
zhuklara [117]3 years ago
5 0

Answer:

The variable cost per unit sold is closest to $11.90.

Explanation:

Only variable manufacturing costs are included in <em>product costing</em> under the variable costing method.

Both the fixed manufacturing costs and non-manufacturing costs are treated as <em>period costs</em>, expensed in the profit and loss.

<u>Calculation of Variable Unit Cost</u>

Direct materials                                  $ 6.60

Direct labor                                         $ 3.65

Variable manufacturing overhead     $ 1.65

Total Variable Unit Cost                     $11.90

Conclusion :

The variable cost per unit sold is closest to $11.90.

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Use the In the News to answer three questions
Flauer [41]

Answer:

2%

2.5%

1.67%

Explanation:

The yield can be computed using the yield formula which coupon payment divided by price.

The coupon payment=face value*coupon rate

face value is $1000

coupon rate is 2%

coupon payment=2%*$1000=$20

when price is $1000:

yield =$20/$1000=2%

when price is $800

yield=$20/$800=2.5%

when price is $1,200

yield =$20/$1,200=1.67%

In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20

3 0
3 years ago
When producers receive a subsidy, sellers receive a:
Vesnalui [34]

Answer:

b. lower price than the pre-subsidy equilibrium, and buyers pay a lower one.

Explanation:

A subsidy is a governments intervention in the form of cash or tax cuts. The government offers subsidies to producers to motivate them to produce more or to lower their cost of production.  As a result,  there will be more products in the market or goods will be cheaper.

Equilibrium price refers to the price determined by the forces of supply and demand. It is the intersection of the demand and supply curve. It is the price that buyers are willing to pay for a certain quantity of a product; all other factors held constant.

Should a producer receive a subsidy, It will lower his cost of production. The producer's output will cost less.  He can afford to offer sellers a lower price as a result of the subsidy.  The traders will be able to sell the products in the market at a low price compared to a situation with no subsidy.

7 0
3 years ago
Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of
mrs_skeptik [129]

Answer:

Please see attached solution

Explanation:

a. Total manufacturing overhead costs allocated $356,400

b. Variable manufacturing overhead spending variance $40,500U

c. Fixed manufacturing overhead spending variance $17,600U

d. Variable manufacturing overhead efficiency variance $19,500F

e. Production volume variance $39,200F

Please find attached detailed solution to the above questions

5 0
3 years ago
Zack received a gift of stock from his uncle on June 20 of the current year. Zack's uncle had a basis in the stock of $4,000, bu
DiKsa [7]

Answer:

$4,000

Explanation:

7 0
3 years ago
Read 2 more answers
An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals
Mkey [24]

Answer:

after tax yield on corporate bonds  = 6.3 %

Explanation:

given data

federal plus state tax bracket = 30%

corporate bonds  yields = 9%

solution

we get here yield that must municipals offer for the investor is express as

after tax yield on corporate bonds = corporate bonds  yields × ( 1 - federal plus state tax bracket  )   ......................1

put here value and we will get

after tax yield on corporate bonds = 9% × ( 1 - 30% )

after tax yield on corporate bonds = 0.09 × ( 1 - 0.30 )

after tax yield on corporate bonds  = 0.063

after tax yield on corporate bonds  = 6.3 %

7 0
3 years ago
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