Martinez Products manufactures a line of desk chairs.​ Martinez's production operations are divided into two departments — Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 26,300 ​chairs:   Department 1 $860,500 Department 2 $295,000   If Martinez sells 22,700 chairs during the​ year, what will be the cost per chair​ produced? (Round your answer to two decimal​ places.)   A. $37.91   B. $50.90   C. $43.94   D. 32.72

Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $56 per unit. The company’s unit costs at this level of activity are given below:           Direct materials $ 6.50   Direct labor   12.00   Variable manufacturing overhead   3.20   Fixed manufacturing overhead   3.00 ($243,000 total) Variable selling expenses   3.70   Fixed selling expenses   3.50 ($283,500 total) Total cost per unit $ 31.90       A number of questions relating to the production and sale of Daks follow. Each question is independent.   Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 101,250 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 81,000 units each year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage) of investing an…

Rutro Corp. makes 59,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:Direct material                                    $21.00  Direct labor                                           23.00 Variable manufacturing overhead           8.00 Fixed manufacturing overhead             30.00Unit product cost                                $82.00 An outside supplier has offered to sell the company all of the 59,000 parts it needs for $75.00 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of another product that is in high demand. The additional contribution margin on this other product would be $310,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, 64% of the fixed manufacturing overhead cost being applied to the part would continue even if the part were…

Scott Corporation produces a part that is used in the production of one of its products.  The per-unit costs associated with the annual production of 5,000 units of this part are as follows: Direct materials                              $  2.00 Direct labor                                     $  3.00 Variable factory overhead             $  2.00 Fixed factory overhead                  $  8.00 Total costs                                       $15.00   Smith Company has offered to sell 5,000 units of the same part to Scott Corporation for $8 per unit. If Scott buys them from Smith Company, $2 fixed factory overhead cost per unit can be saved. In this condition, Scott should: Group of answer choices Make the part, thereby saving $40,000 annually. Make the part, thereby saving $1.50 per unit. Buy the part, there by saving $1.00 per unit Buy the part, there by saving $1.00 per unit