The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows:
Direct materials $50
Direct manufacturing labor 8
Variable manufacturing overhead 10
Fixed manufacturing overhead 23
Sales commissions (2% of sales) 5
Administrative salaries 9
Total $105
What are the variable costs per unit associated with Product ORD203?
A) $73 B) $82 C) $105 D) $60
What are the fixed costs per unit associated with Product ORD203?
A) $35 B) $32 C) $23 D) $44
D
A
The east company manufacturing several different products units costs associated with product ORD203
To find the variable costs per unit associated with Product ORD203, we need to add up the direct materials cost, direct manufacturing labor cost, and variable manufacturing overhead cost per unit.
Variable costs per unit = Direct materials + Direct manufacturing labor + Variable manufacturing overhead
= $50 + $8 + $10
= $68
So, the variable costs per unit associated with Product ORD203 is $68.
To find the fixed costs per unit associated with Product ORD203, we need to divide the fixed manufacturing overhead cost by the number of units.
Fixed costs per unit = Fixed manufacturing overhead / Number of units
Since the number of units is not given in the information provided, we cannot determine the fixed costs per unit. Hence, the answer is not available among the options provided.
To determine the variable costs per unit associated with Product ORD203, we need to add up all the variable costs listed in the given information. In this case, the variable costs are the direct materials, direct manufacturing labor, and variable manufacturing overhead.
Variable Costs per unit = Direct materials + Direct manufacturing labor + Variable manufacturing overhead
Substituting the given values:
Variable Costs per unit = $50 + $8 + $10
Variable Costs per unit = $68
So, the variable costs per unit associated with Product ORD203 is $68.
The correct option for the variable costs per unit is not provided in the answer choices. None of the options A, B, C, or D is correct.
To determine the fixed costs per unit associated with Product ORD203, we need to divide the total fixed costs by the number of units.
Fixed Costs per unit = Fixed manufacturing overhead
Substituting the given value:
Fixed Costs per unit = $23
So, the fixed costs per unit associated with Product ORD203 is $23.
The correct option for the fixed costs per unit is option C) $23.