Question

Q7. Rose Manufacturing currently produces 4,000 bicycles per month and has the following per unit data. Direct materials $25.00 Direct manufacturing labor $5.00 Variable manufacturing overhead $14.50 Fixed manufacturing overhead S12.50 Total manufacturing costs 57.00 Production capacity is up to 7000 units. Compute total manufacturing cost per unit when 5,000 bicycles are produced Example of answer: 2.10 Question 8 (5 points) Q8. The following displays Logan Company's operation results at a volume of 100,000 units. Sales $900,000 Variable Costs ($500,000) Fixed Costs ($200.000) Net Profit $200.000 Production capacity is 200,000 units. If Logan increases sales volume by 20,000 units, what would be net profit? Example of answer: 4500

Answer 1

Answer:

7.Particulers		Amount($)
Direct materials	($25 X 5000 units)	1,25,000
Direct manufacturing labor	($5 X 5000 units)	25,000
Variable manufacturing overhead	($14.50 X 5000 units)	72,500
Fixed manufacturing overhead	($12.50 X 4000 units)	50,000
Total manufacturing cost		2,72,500
Number of units produced		5000 units
Cost per unit	($272,500 / 5000 units)	54.50

8.		Amount($)
A	Sale (900,000/100,000*120,000 Units)	10,80,000
B	variable cost(500,000/100,000*120,000)	6,00,000
C	fixed cost ( same )	2,00,000
D=A-B-C	Net profit	2,80,000