Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Jul 2017 My Price 7.00

Tire and Spoke Manufacturing


Multiple Choice

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 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. $79 per unit

b. $158 per unit

c. $74 per unit

d. $134 per unit

Answers

(5)
Status NEW Posted 26 Jul 2017 01:07 PM My Price 7.00

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