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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Ridez 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   8
   Variable manufacturing overhead   12
   Fixed manufacturing overhead   15
   Total manufacturing costs   $85

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?
A) $78.50 per unit
B) $170 per unit
C) $72.50 per unit
D) $77.50 per unit
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
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#3
9 years ago
Grinning Face
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#4
4 years ago
thank you
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