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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 6
Cornerstone Exercises
Sodowsky Manufacturing, Inc., produces brightly colored clog-style shoes. For next year, Sodowsky predicts that 150,000 units will be produced, with the following total costs:
Required:
1. Calculate the prime cost per unit.
2. Calculate the conversion cost per unit.
3. Calculate the total variable cost per unit.
4. Calculate the total product (manufacturing) cost per unit.
5. What if the number of units increased to 165,000 and all unit variable costs stayed the same? Explain what the impact would be on the following costs: total direct materials, total direct labor, total variable overhead, total fixed overhead, unit prime cost, unit conversion cost. What would the product cost per unit be in this case?
Sodowsky Manufacturing, Inc., produces brightly colored clog-style shoes. For next year, Sodowsky predicts that 150,000 units will be produced, with the following total costs:
Required:
1. Calculate the prime cost per unit.
2. Calculate the conversion cost per unit.
3. Calculate the total variable cost per unit.
4. Calculate the total product (manufacturing) cost per unit.
5. What if the number of units increased to 165,000 and all unit variable costs stayed the same? Explain what the impact would be on the following costs: total direct materials, total direct labor, total variable overhead, total fixed overhead, unit prime cost, unit conversion cost. What would the product cost per unit be in this case?
Explanation
Verified
Verified
1.
Calculate the Unit prime cost:
2....
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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