Question

G The information that follows is for Nancy’s Name Tents for the year ended December 31, 2019 and covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents. The relevant range is from 0 - 3,500 units.

Sales $50 sales price per name tent
Costs:
Variable Costs Per Tent (3,000 name tents produced and sold)
Direct materials 8
Direct labor 7
Manufacturing overhead 8
Period Costs 5
Fixed Costs Manufacturing overhead 10
Period Costs 5

1) If 10,000 tents are produced and sold, what is the product cost per tent?2) If 15,000 tents are produced and sold, what is the product cost per tent? ​​​​​​​3) If 2,000 tents are produced and sold, what is the product cost per tent?

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

Variable Costs Per Tent (3,000 name tents produced and sold)

Direct materials 8

Direct labor 7

Manufacturing overhead 8

Period Costs 5

Fixed Costs Manufacturing overhead 10

First, we need to calculate the total period cost and fixed costs.

Total period cost= 5*3,000= $15,000

Fixed cost= 10*3,000= $30,000

1) 10,000 units

Unitary cost= 8 + 7 + 8 + (15,000/10,000) + (30,000/10,000)= $27.5 per unit

2) 15,000 units

Unitary cost= 8 + 7 + 8 + (15,000/15,000) + (30,000/15,000)= $26 per unit

3) 2,000 units

Unitary cost= 8 + 7 + 8 + (15,000/2,000) + (30,000/2,000)= $45.5 per unit