Question

Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Answer 1

$85.50

Step-by-step explanation:

Particulars Amount Amount Difference

Direct materials $813,150 $877,500 $74,350

Direct labor $215,450 $232,500 $17,050

Manufacturing OH $1,011,500 $1,024,150 $12,650

T.V. Overheads 2040100 2134150 $94,050

Production Volume 13,900 15,000 1,100

Variable Cost per unit $85.50