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Author Question: Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply ... (Read 24 times)

tatyanajohnson

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on: Mar 6, 2021

Question 1

Rapid Cabinet Makers Inc. provided the following information for last month:

Sales$25,000
Variable costs10,000
Fixed costs3,000
Operating income $12,000
If sales reduce to half the amount in the next month, what is the projected operating income?
◦ $1,000
◦ $6,000
◦ $4,500
◦ $18,500

Question 2

Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for sales to regular customers:

Direct materials$53
Direct manufacturing labor10
Variable manufacturing overhead12
Fixed manufacturing overhead14
Total manufacturing costs $89

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?
◦ $91.80 per unit
◦ $111.25 per unit
◦ $69.80 per unit
◦ $86.20 per unit
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by tatyanajohnson on Mar 6, 2021

brittanywood

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Reply #1 on: Mar 6, 2021
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tatyanajohnson

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

LegendaryAnswers

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Reply 3 on: Yesterday
:D TYSM

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