Use the following information for items
The Colin Division of Mochrie Company sells its product for $30 per unit.Variable costs per unit are: manufacturing, $12; and selling and administrative, $2.Fixed costs are: $200,000 manufacturing overhead, and $50,000 selling and administrative.There was no beginning inventory.Expected sales for next year are 40,000 units.Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division.As he plans for next year, he has to decide whether to produce 40,000 units or 50,000 units.
-What would the anufacturing cost per unit be under variable costing for each alternative?
Correct Answer:
Verified
Q22: When units sold exceeds units produced
A)net income
Q30: Management may be tempted to overproduce
A)when using
Q44: If a division manager's compensation is based
Q45: Under normal costing:
A)Only direct variable manufacturing costs
Q46: Under throughput costing:
A)Only direct variable manufacturing costs
Q47: Use the following information for items
The
Q49: Expected sales for next year for the
Q50: Under absorption costing when production exceeds sales
Q52: Under absorption costing when production equals sales
Q53: Under absorption costing:
A)Only direct variable manufacturing costs
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