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mel-nik [20]
3 years ago
7

Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its ave

rage costs per unit are as follows: Average Cost per Unit Direct materials $ 6.45 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 1.05 Fixed administrative expense $ 0.60 Sales commissions $ 1.00 Variable administrative expense $ 0.50 If 5,000 units are sold, the variable cost per unit sold is closest to:
Business
1 answer:
ratelena [41]3 years ago
3 0

Answer:

$12.50

Explanation:

Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.

Whereas fixed costs are those costs which remains constant and do not change with the change in activity.

All the following costs are variable costs

                                                          Average Cost per Unit

Direct materials                                   $6.45

Direct labor                                          $3.30

Variable manufacturing overhead     $1.25

Sales commissions                              $1.00

Variable administrative expense       <u>$0.50</u>

Total variable cost per unit                <u>$12.50</u>

All the following costs are fixed costs.

Fixed manufacturing overhead         $3.00

Fixed selling expense                        $1.05

Fixed administrative expense           $0.60

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Explanation:

Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of  $249,280, actual direct labor hours of  41,000, and actual machine hours of 11,000.We can calculate the to apply .

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4 0
3 years ago
Which of the following decision-making perspectives assumes that consumers often make purchases and reach decisions based on the
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Answer:

The correct answer is a. Rational decision-making perspective.

Explanation:

The rational model pursues the constitution of a process of choice among alternatives to maximize the benefits of the organization. It includes a broad definition of the problem, an exhaustive collection and analysis of the data, as well as a careful evaluation of the alternatives. Andreu, in the year (2001), affirms that the criteria for evaluating alternatives are well known and assumes that the generation and exchange of information between individuals is objective and precise. Therefore, the rational decision-making model is based on 3 explicit assumptions:

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3 0
3 years ago
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kompoz [17]

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3 years ago
Raby, Inc. acquires all of the outstanding stock of Fletcher Corporation on January 1, 2017. At that date, Fletcher owns only th
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Answer:

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6 0
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