7 Zaria Inc. provides the following cost information for producing 10,000 unitsof inventory during the current month:Direct materials costs$30,000Direct labor costs55,000Variable manufacturing20,000overhead costsFixed manufacturingoverhead costs25,000Variable Selling andAdministrative expenses15,000Fixed Selling andAdministrative expenses10,000The product costs per unit under variable costing would be:O $15.50 per unit$13 per unit$10.50 per unitO $12 per unit

Variable costs are those costs that change with the change in the number of products manufactured by…

Answered: The product costs per unit under…

Business

Accounting

The product costs per unit under variable costing would be:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

See similar textbooks

Related questions

Q: oOn January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…

A: A log book is used to record a business transaction in an organization's accounting records. A…

Q: On January

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Which of the following bond is the safest? Treasury Bonds Corporate Bonds Savings Bonds

A: Bonds are a form of liability for the business, for which regular interest payments along with value…

Q: Sales (all on credit), P600,000 Accounts receivable, P100,000 Allowance for uncollectible…

A: Following information are provided in the question: Sales (all on credit), P600,000 Accounts…

Q: Data concerning Sotero Corporation's single product appear below:…

A: Following data are given for the required solution: Contribution margin per unit = $84 Increase in…

Q: ConstructAB'S cash budget for the next three months.

A: Cash budget is the budget which is made by the company to determine the cash inflows and outflows of…

Q: Oriental Company follows the procedure of debiting bad debt expense for 2% of all new sales. Sales…

A: Introduction:- Bad debt are outstanding balances (expenses)that a business deems uncollectible…

Q: The following data relates to the ABC Corporation and its A Division.…

A: Economic value added is one of the performance of the business. It shows how much operating profits…

Q: an. Sold Private car for a 4000 and bought a nw one for burines from proceed plus f S000. from ofice…

A: Introduction: Journalising is the practice of maintaining financial transactions in the books of…

Q: Select one:

A: Annuity: This is used in case of a future annuity – suppose an equal sum of money is invested in…

Q: PROBLEMS 21 The following information summarized total production costs and number of units of…

A: Lets understand the basics. We will solve this question by high low method. In this method, total…

Q: nership of Len, Gray has the ability to exercise significant influence over Len's financial and…

A: Disclaimer : “Since you have asked multiple question, we will solve the first question for you. If…

Q: 4. On January 1, 2022, Generous, Inc. leased two automobiles for executive use. The lease requires…

A: The amount of the lease liability is recognized on January 1, 2022. Journal entry

Q: The Gypsy Corporation has the following portfolio of investment securities (designated at fair value…

A: Unrealized Gains It is a theoretical benefit which exists on paper, coming about as a result of an…

Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…

Q: joubert and Norman each have a fity percent (5ON) ownership interest in Denise Partnership Each…

A: Where there are two people who share profit or loss in agri ratio with rewards and risk and…

Q: The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that gives aggregate…

Q: 4 5 6

A: Given as, In 9 years, PV factor @10%= 5.768.

Q: Based on your answers and the decision criteria, determine whether you will accept or reject this…

A: Solution: Net present value is computed as = Present value of cash inflows - Initial investment

Q: Which of the following is not a basic characteristic of a system of cash control? Group of answer…

A: Every business organizations are required to implement the proper controls so as to avoid the theft…

Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall…

A: Number of days' sales in receivables is the number of days required to get collection from accounts…

Q: 14. LO4 Last week June worked 50.5 hours. She is paid $15.80 per hour for a regular workweek of 44…

A: Gross wages means how many earnings has been earned by the business. It includes regular wages…

Q: 45.The data below pertains to ABC Corp on June 30: Balance per bank statement, P11,164 Receipts…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish…

A: Capital budgeting techniques are techniques which are used for analysing profitability of the…

Q: 21. During 2019, Company A had net credit sales of Php 600,000. Its Accounts Receivable and…

A: The aging method is used to estimate the amount of uncollectible accounts receivable. The technique…

Q: 1: Operating expense in 2019 is 20% higher than it was in 2018 indicates a vertical analysis. II: In…

A: Vertical analysis means where the percentage is calculate by taking total assets as base in balance…

Q: he following are the records of a domestic corporation

A: As per the provisions of BIR in Phillipines ---…

Q: Coroid Corporation used the following data to evaluate their current operating system. The company…

A: Static budget is a fixed budget which is not change with the level of production. It remains same as…

Q: MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales…

A: Lets understand the basics. Management prepares master budget and various budgets based on the…

Q: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…

A: Right Shares: - Right shares are those shares that are issued by the company to its existing…

Q: From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March…

A: Gross profit is the profit a company makes after deducting the costs of manufacturing, selling, and…

Q: Paula, chis Dave, unrelated individuals own 30 shares, 30 shares, and 40 shares respectively in Blue…

A: Introduction: Shares are usually classified into two types: equity and preference shares. Holders of…

Q: Explain the advantage of modified breakeven analysis over the basic breakeven formula.

A: A break-even analysis is a key calculation that compares the startup costs of a new firm, service,…

Q: The following debtor control account and debtors list were prepared by the owner of Siyadula…

A: Debtor Control Account The debtors' control account is a general/master ledger account that shows…

Q: On July 1, 2021, ABC Co. purchased a franchise for $78,000. The franchise has a remaining legal and…

A: Introduction:- Journal entry is the first stage of accounting process. which is used to record…

Q: nominal interest

A: Compound interest: this is used in case of lump-sum money accumulates in the future if interest is…

Q: A wood products company has decided to purchase new logging equipment for $139805 with a trade-in of…

A: Depreciation Accounting is the method of debiting the cost of an asset and crediting it to a…

Q: Being a vlogger with the aim of imparting information and knowledge to people who watch their videos…

A: Answer to (11) True, If a blogger provides information and knowledge to people then this can change…

Q: I: Common-size analysis all accounts are presented as percentage of total liabilities in Balance…

A: Financial statements are those statements and reports which are prepared at the end of the period…

Q: Part V. Unearned Revenue On November 1, Luna Repair Shop receives P80,000 from a customer as payment…

A: Adjusting entries are those journal entries which are passed at the end of accounting period for the…

Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…

A: Solution: In order to determine dividend per share for each class of shareholder, first we will…

Q: Winston Company had two products code named X and Y. The firm had the following budget for August:…

A: Introduction:- The following formula used as follows under:- Budgeted units = Budgeted sales /…

Q: 4. What if November production was 56,000 units, costs were stable, and sales were 57,000 units?…

A: Under variable costing system, fixed manufacturing overhead is considered as period cost and same is…

Q: a. Sold merchandise for cash (cost of merchandise $28, 797). b. Received merchandise returned by…

A: Introduction: Journals: Each and every business transactions are to be recorded in Journals. All the…

Q: A firm had purchased machinery on Ist April, 2017 of RS.8 lacs and Sold on Ist october, 2018 for Rs.…

A: Introduction: Depreciation is an accounting strategy for extending the value of a capital item…

Q: An extract from the financial statements of Wedding Cake Island Ltd for the year ended 30 June is…

Q: Net income, currents assets and current liabilities for 2020 are expected to vary with sales. The…

A: As the current assets vary with sales then the expected current assets are based on the change in…

Q: Kristopher Corp. reported the following cash transactions in 2021 Land purchased $500,000…

A: Investing activities includes all investment activities on which either the cash was spent or cash…

Q: What does an Income statement tell about a business?

A: The income statement is a summary of a company's financial performance over a certain time period.…

Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…

A: Cash receipts means the amount of cash that is to be received by the entity from sale, services or…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Zaria Inc. provides the following cost information for producing 10,000 units
of inventory during the current month:
Direct materials costs
$30,000
Direct labor costs
55,000
Variable manufacturing
20,000
overhead costs
Fixed manufacturing
overhead costs
25,000
Variable Selling and
Administrative expenses
15,000
Fixed Selling and
Administrative expenses
10,000
The product costs per unit under variable costing would be:
O $15.50 per unit
$13 per unit
$10.50 per unit
O $12 per unit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2: Computation of products cost per unit under variable costing method-

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?