Question

The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows:

                              Direct materials $54

                              Direct manufacturing labor 8

                              Variable manufacturing overhead    11

                              Fixed manufacturing overhead    25

                              Sales commissions (2% of sales) 5

                              Administrative salaries 12

                                         Total    $115

What is the percentage of the total fixed costs per unit associated with Product ORD105 with respect to total cost?

A) 37%

B) 32%

C) 15%

D) 26%

Answer 1

Answer » (B), 32% Calculation of Percentage of fixed cost per volt associgled | with product_ORD 105 with Lespect to total costs: ?! I Percentage of fixed costs with respect to total cost is the ratio of Total Fixed costs associated with product divided by the Total Coit of product. It means how many percentage of fixed Costs are of total cost. In the question, it is given that Total Fixed is. Eixej Manufacturing Costs Overhead : $ (25 + 1) to boot = $ 3724 + Ajministrative Sqlarles Total Profyct cost $ 15py in percentage of fixed cost py - Ivi + 40 with total product cost ay Fixed cost per 40) E Total Product Cost per unit = $ 37 $115 32:17% 32% ... The per centage of total fixed costs per units associated with product orn loś with respect to total costs is 32% Answer C®). 32%