What is the variable production cost per unit

Assignment Help Accounting Basics
Reference no: EM13123605

Top Disc manufactures frisbees. The following information is available for 2013 , the company's first year in business when it produced 325,000 units. Revenue of $450,000 was generated by the sale of 180,000 frisbees.

Variable Cost Fixed Cost
Production
direct material $150,000
direct labor 100,000
overhead 75,000 $112,500
Selling & Admin. 90,000 100,000

a. what is the variable production cost per unit?
b. what is the total contribution margin per unit?
c. prepare a variable costing income statement.

Reference no: EM13123605

Questions Cloud

Write about the long-term system : Write about the long-term system. What is it? How does it work? Who pays for it? Who gets insurance? As much as you can.
Question about equilibrium point : At a price of $1.90 per bushel, the annual U.S. supply and demand for barley are 410 million bushels and 455 million bushels, respectively. When the price rises to $2.70 per bushel
Total overhead cost during budget : Overhead cost is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours for the month.
Compute probability that the bulb will last six hours : A certain type of light bulb that is used on a projector has a Weibull distribution with parameters α=2, and β=3. Compute the following: The probability that the bulb will last 6.
What is the variable production cost per unit : Top Disc manufactures frisbees. The following information is available for 2013 , the company's first year in business when it produced 325,000 units. Revenue of $450,000 was generated by the sale of 180,000 frisbees.
Provide recommendations to the cpa about how to select : A CPA is interested in testing the fairness of the ending inventory balance at an audit client. He has relatively little experience using statistical sampling methods and, does not like to turn anything over to random chance.
Compute the equilibrium levels of b and g : Compute the equilibrium levels of B and G consumed and produced in the Home country under autarky. What is the corresponding value of p?
An essay on interested to sell book : Write an Essay on why are you interested to sell book. And why should you belong to the team if selling?
Standard hours allowed for labors : Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours allowed for October would be:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Internet research of sole proprietorships

Conduct literature and internet research of sole proprietorships, partnerships, and corporations. Discuss the three business forms in terms of how they are formed, managed, and how they operate as business entities.

  Use of market value for investment valuation

While US GAAP requires assets to be valued at the lower of cost or market, there is a belief that assets with value fluctuations should be valued at market and adjusted on a regular basis. Create an argument supporting the use of market value for ..

  Production cost data

Crawford Company has the following equivalent units for July: materials 10,000 and conversion costs 9,000. Production cost data are:

  Equilibrium point for publishing company

A small publishing company is planning to publish a new book. The production costs will include one time fixed costs(such as editing) and variable costs( such as printing).

  Design a performance evaluation report

Design a performance evaluation report for the purchasing department. Describe what each item in the report measures. Evaluate the performance of the purchasing department.

  Prepare an anti-aging drug

Godert pharmaceutical company has several scientists working in the labs trying to prepare an anti-aging drug. The cost of this research and development

  Calculate the present worth of future cash flow

How long will this product be profitable?  All the above estimates are in constant value dollars so that inflation has been accounted for.  If the interest rate is 12%, what is the PW of this product?

  Margin of safety problems

Strong Wood Company is a distributor of patio furniture. Data concerning the next month's budget appear below. What is the company's margin of safety? What is the company's margin of safety as a percentage of sales?

  Flat income tax-progressive tax system

Explain what a Flat Income Tax System is and how it differs from progressive tax system?.What are advantages and disadvantages of a Flat Income Tax?

  Preparation of single step and multi step income statement

The accountant of Whitney Houston Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2007- Prepare a multiple-step income statement. Prepare a single-step in..

  Performance reporting-flexible budgeting

Analyze the budget variance by calculating the direct labor efficiency and rate variances for June. What alternatives to the preceding monthly report could improve control over the stamping department's direct labor?

  Absorption and variable costing income statements

Explain the difference between absorption and variable costing income statements and discuss which method has a greater chance of manipulation by management.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd