Acct a and b. Please assist Greek Manufacturing Company produces and sells a line of product that are sold usually all year round. Thecompany has a maximum production capacity of 100,000 units per year. Operating at normal capacity, thebusiness earned Operating Income of $600,000 in 2020. The following cost data has been prepared for theyear ended December 31, 2020.Selling price per unit..$50.00Production Costs:Direct Materials$10.00Direct Labour$8.00Variable Manufacturing Overhead$7.00Fixed Manufacturing Overhead...$450,000Fixed Selling & Administrative Expenses.$300,000Variable selling expense per unit$10.00 Required:a)Using the equation method, calculate the normal capacity of the business.b)Calculate:i) the variable production cost per unitii) the total production cost per unitiii) The total variable cost per unitiv) Total Fixed Costs

The difference between the sales revenue and the variable costs is called the contribution. It is…

a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the variable production cost per unit ii) the total production cost per unit ii) The total variable cost per unit iv) Total Fixed Costs

a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the variable production cost per unit ii) the total production cost per unit ii) The total variable cost per unit iv) Total Fixed Costs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

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Question

Acct a and b. Please assist

Greek Manufacturing Company produces and sells a line of product that are sold usually all year round. The
company has a maximum production capacity of 100,000 units per year. Operating at normal capacity, the
business earned Operating Income of $600,000 in 2020. The following cost data has been prepared for the
year ended December 31, 2020.
Selling price per unit..
$50.00
Production Costs:
Direct Materials
$10.00
Direct Labour
$8.00
Variable Manufacturing Overhead
$7.00
Fixed Manufacturing Overhead...
$450,000
Fixed Selling & Administrative Expenses.
$300,000
Variable selling expense per unit
$10.00

Required:
a)
Using the equation method, calculate the normal capacity of the business.
b)
Calculate:
i) the variable production cost per unit
ii) the total production cost per unit
iii) The total variable cost per unit
iv) Total Fixed Costs

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