Calculate the total variable product cost per unit

Assignment Help Cost Accounting

Reference no: EM13901039

The HOW and WHY of Calculating Prime Cost, Conversion Cost, Variable Product Cost, and Total Product Cost

Information:

Carreker Company manufactures cell phones. For next year, Carreker predicts that 30,000 units will be produced, with the following total costs:

Direct Materials	$ 150,000
Direct Labor	90,000
Variable Overhead	30,000
Fixed overhead	450,000

Why:

Product costs are basic to management control and decision making. Managers use these costs for budgeting to check the impact of an increase or a decrease in unit sales on operating income. Since fixed costs stay the same when units change, knowledge of prime cost, conversion cost, variable product cost, and overall product cost give important information, allowing analysis of costs at differing levels of production.

Required:

1. Calculate the prime cost per unit.

2. Calculate the conversion cost per unit.

3. Calculate the total variable product cost per unit.

4. Calculate the total product (manufacturing) cost per unit.

5. What if 32,000 cell phones could be manufactured next year? Explain in words how that would affect the unit prime cost, the unit conversion cost, the unit variable product cost, and the unit total product cost.

Reference no: EM13901039

Questions Cloud

Calculate thefederal tax payable for the year : (Preferably you use the CRA forms to answer the question. CRA web site:http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html). Calculate theFederal tax payable for the year 2010 for Mrs. Smith, given the following information:

Characteristics of a high-performing marketing organizations : This article lists all the defining characteristics of a high-performing marketing organizations. For each of them, please use your own words to explain, and also provide an appropriate example. When choosing examples, you can elaborate on example..

What is the organization or group''s website? : What is the organization or group's website?

What do we mean when we say that an object is charged : What do we mean when we say that an object is charged and What do we mean when we say that the net charge is conserved in a closed system?

Calculate the total variable product cost per unit : Calculate the prime cost per unit. Calculate the conversion cost per unit. Calculate the total variable product cost per unit. Calculate the total product (manufacturing) cost per unit.

Use the information below to prepare a balance sheet : Use the information below to prepare a balance sheet and a cash flow statement forMr. King. Calculate his net worth and cash surplus or deficit. (All expenses are on monthly basis).

Discuss the long-term effects : 1. Problem identification (Global Warming): Clearly indicate the issue you will discuss and the influence this problem has on land, air, water resources, plant life, animal life, and human societies. Discuss the long-term effects this problem will..

How the ruling in the case impacts the lives of americans : The Supreme Court is made up of nine justices who are responsible for deciding whether or not laws are in line with the U.S. Constitution

What is the total charge on the disc : The electron density on the surface of a circular disc of radius 20 m is given as ne = 300ρ cos2 φ electrons/meter2. Determine the number of electrons residing on the surface of the disc. What is the total charge on the disc?

User Account

All Pages