Question

Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply...

Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

   Direct materials                                        $50

                  Direct manufacturing labor                          5

                  Variable manufacturing overhead              14

                  Fixed manufacturing overhead                   10

                       Total manufacturing costs                   $79

The plant has a capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per-unit cost of producing 2,000 bicycles?

  

[[selectone]]

a. $158 per unit

b. $79 per unit

c. $134 per unit

d. $74 per unit

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply...
Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:                  Direct materials                                        P50                  Direct manufacturing labor                          5                  Variable manufacturing overhead              14                  Fixed manufacturing overhead                  10                      Total manufacturing costs                   P79 The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?
EZ Riderz Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for...
EZ Riderz Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for sales to regular customers: Direct materials $125 Direct manufacturing labor 72 Variable manufacturing overhead 12 Fixed manufacturing overhead 22 Total manufacturing costs $231 The plant has capacity for 6,000 bicycles and is considering expanding production to 5,000 bicycles. What is the per unit cost of producing 5,000 bicycles? Do not use commas or dollar signs. Answer in the form XXX.XX
Grip Manufacturing currently produces 1,000 tires per month. The following per unit data for 1,000 tires...
Grip Manufacturing currently produces 1,000 tires per month. The following per unit data for 1,000 tires apply for sales to regular customers: Variable direct materials    $30 Variable direct labor   $5 Variable manufacturing overhead   $8 Fixed manufacturing overhead   $12 = Total manufacturing costs   $55 The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? Group of answer choices $110,000 $68,000 $98,000 $88,000
Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a...
Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity and sells the product in the market for $200 per unit. The following per unit data apply for sales to regular customers: variable costs: fixed costs: direct material $40 fixed manufacturing $30 direct labor $20 fixed marketing $10 variable overhead $10 fixed managerial $25 variable marketing $15 what is the change...
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of...
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Direct materials $ 22.50 Direct labor $ 7.50 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 19.00 Variable selling & administrative expense $ 2.70 Fixed selling & administrative expense $ 8.60 The normal selling price of the product is $67.80 per unit. An order has been received...
discuss how these principles might apply to a manufacturing company. Please illustrate with examples Part b...
discuss how these principles might apply to a manufacturing company. Please illustrate with examples Part b Cricket World Cup Company produces a single product. The cost of producing and selling a single Cricket Bat at the company's normal activity level of 8,000 units per year is: Direct materials $2.50 Direct labor       3.00 Variable manufacturing overhead .50 Fixed manufacturing overhead 4.25 Variable selling and administrative expense 1.50 Fixed selling and administrative expense 2.00 The normal selling price is $15.00 per unit....
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of...
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Direct materials $ 22.50 Direct labor $ 7.50 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 19.00 Variable selling & administrative expense $ 2.70 Fixed selling & administrative expense $ 8.60 The normal selling price of the product is $67.80 per unit. An order has been received...
Glade Company produces a single product. The costs of producing and selling a single unit of...
Glade Company produces a single product. The costs of producing and selling a single unit of this product at the company's current activity level of 8,000 units per month are: Direct Materials ……………………………………………........................ $2.50 Direct labor ……………………………………………………...………… $3.00 Variable manufacturing overhead ……………………………..………….. .$0.50 Fixed Manufacturing Overhead …………………………...……………….. $4.25 Variable selling and administrative expenses………………………………. $1.50 Fixed selling and administrative expenses………………………………….. $2.00 The normal selling price is $15 per unit. The company's capacity is 10,000 units per month. An order has been...
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 103,200 units per year is: Direct materials $ 1.70 Direct labor $ 4.00 Variable manufacturing overhead $ 0.80 Fixed manufacturing overhead $ 3.45 Variable selling and administrative expenses $ 1.70 Fixed selling and administrative expenses $ 3.00 The normal selling price is $20.00 per unit. The company’s capacity is 115,200 units per year. An order...
Calla Company produces skateboards that sell for $65 per unit. The company currently has the capacity...
Calla Company produces skateboards that sell for $65 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 81,500 skateboards per year. Annual costs for 81,500 skateboards follow. Direct materials $ 937,250 Direct labor 643,850 Overhead 947,000 Selling expenses 553,000 Administrative expenses 467,000 Total costs and expenses $ 3,548,100 A new retail store has offered to buy 8,500 of its skateboards for $60 per unit. The store is in a different market from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT