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Find the total relevant costs per unit for decision-making

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Reference no: EM132849066

Question - The following data for Victory Violins is based on monthly demand sales of 100 violins. Variable production costs: Direct materials $120/violin; Direct labor $150/violin; Variable factory overhead $60/violin.

Fixed production costs: Depreciation $20/violin; Factory rent $48/violin; Other $12/violin bringing total production costs to $410/violin.

Variable administrative expense $24/violin and fixed administrative expense $36/violin.

Under consideration is a special order of 10 violins for $390/violin.

Required - Find the total relevant costs per unit for decision-making?

a. $354

b. $330

c. $342

d. $390

Reference no: EM132849066

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