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. Rose Company data Expense Average Cost per Unit Direct materials Direct labor Indirect materials $12 10 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 4 3 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

I totally dont get how to get these answers no matter how hard i try! Can you please help

Question 6
1 pts
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.
Rose Company data
Expense
Average Cost per Unit
Direct materials
$12
Direct labor
Indirect materials
10
2
Fixed manufacturing overhead
Variable manufacturing overhead
Fixed selling and administrative expenses
3
8
Variable sales commissions
25
Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
B. If 18,000 units are produced, what is the variable cost per unit?
C. If 21,000 units are produced, what are the total variable costs?
D. If 11,000 units are produced, what are the total variable costs?
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred?
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Transcribed Image Text:Question 6 1 pts 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. Rose Company data Expense Average Cost per Unit Direct materials $12 Direct labor Indirect materials 10 2 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 3 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 11,000 units are produced, what are the total variable costs? E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Expert Solution
Step 1

Answer a:

Variable cost per unit:Variable cost per unit=Direct Materials+Direct Labor+Variable MOH+Variable Sales commissions=$12+$10+$3+$25=$50 per unit

 

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Data analytics process (IMPACT cycle)
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education