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Bad White [126]
3 years ago
11

Bakan Corporation has provided the following production and average cost data for two levels of monthly production volume. The c

ompany produces a single product. Production volume 8,600 units 9,600 units Direct materials $ 98.70 per unit $ 98.70 per unit Direct labor $ 25.60 per unit $ 25.60 per unit Manufacturing overhead $ 73.20 per unit $ 69.20 per unit The best estimate of the total variable manufacturing cost per unit is:_______
Business
1 answer:
storchak [24]3 years ago
8 0

Answer:

$159.1

Explanation:

The computation of the total variable manufacturing cost per unit is shown below;

At 8,600 units,

The total cos is

= (Direct material per unit + Direct labor per unit + Manufacturing cost per unit) × Number of units

= ($98.70 per unit + $25.60 per unit + $73.20 per unit) × 8,600 units

= $197.5 per unit × 8,600 units

= $1,698,500

At 9,600 units

The Total cost

= ($98.70 per unit + $25.60 per unit + $69.20) × 9,600 units

= $193.5 per unit × 9,600 units

= $1,857,600

So, the best estimated would be;

= ($1857,600 - $1,698,500) ÷ (9,600 units - 8,600 units)

= $159,100 ÷ 1,000 units

= $159.1

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8 0
2 years ago
Which of the following is not typical of traditional costing systems? Use of direct labor hours or direct labor cost to assign o
EleoNora [17]

Answer:

The correct answer is use of multiple cost drivers to allocate overhead

Explanation:

Use of direct labor hours or direct labor cost to assign overhead to products is typical  of traditional costing systems as overhead is believed to have positive relationship with labor-related variables.

Besides,using a business-wide or plant-wide single predetermined overhead rate is not feature of traditional systems of costing.

Since labor-related variables such as direct labor hours or direct labor cost is assumed to be a driver of overhead cost,hence an appropriate overhead absorption basis,it is perfectly understood that there is correlation between direct labor and incurrence of overhead cost in the business.

8 0
4 years ago
Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. Dur
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Answer:

b increased by 2%. 

Explanation:

Increase in real wage = 6% - 4% = 2%

7 0
3 years ago
A term describing a firm's normal range of operating activities is: (a) Relevant range of operations. (b) Break-even level of op
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Answer:

A firm's normal range of operating activities is relevant range of operations.

Explanation:

Relevant range of operations can be described simply as a firm or company's expected range of activities without any extreme economic conditions. It is the range where the firm operates in normal conditions. Within this range the firm's operations run smoothly. Outside this range revenue and expenditure may fluctuate from what was expected.

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3 years ago
Indicate whether the following statements are positive or normative. a. Raising interest rates encourages people to save: b. The
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a. Raising interest rates encourages people to save: positive statement

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<h3>What are normative and positive statements?</h3>

Normative statements come from a viewpoint or an opinion. As a result, the terms "should," "ought," or "it is preferable to" are commonly used. Normative statements can never be proven to be true.

Conversely, positive statements can often be put to the test in theory, if not always in practice. Positive statements are not value judgments. They are predictions of what it is, was, or will become.

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3 0
2 years ago
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