Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for materials handling?
A) $1.50 per part
B) $3.75 per part
C) $7.50 per part
D) $2.50 per part

Question

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for materials handling?
A) $1.50 per part
B) $3.75 per part
C) $7.50 per part
D) $2.50 per part

Quizplus · Accepted Answer

The activity rate for materials handling is not directly calculable from the provided information, as it requires specific details about the materials handling costs and the number of parts handled. The given data includes total cost per unit, selling and administrative costs, total variable cost, and desired profit per unit, but does not specify the costs associated with materials handling or the activity level (number of parts) to calculate the rate per part. Therefore, without additional information, the correct activity rate for materials handling cannot be determined.

Use This Information for Swan Company to Answer the Questions