Per Total Unit Direct materials $ 4.65 Direct labour 4.05 Supervision Depreciation Variable manufacturing overhead 2.25 $90,000 1.50 60,000 0.90 Rent 0.45 18,000 Total production cost $13.80 A...


Please answer the question below:



Per<br>Total<br>Unit<br>Direct materials<br>$ 4.65<br>Direct labour<br>4.05<br>Supervision<br>Depreciation<br>Variable manufacturing overhead<br>2.25<br>$90,000<br>1.50<br>60,000<br>0.90<br>Rent<br>0.45<br>18,000<br>Total production cost<br>$13.80<br>A supervisor would have to be hired to oversee production of the starters. However, the company has sufficient idle tools and<br>machinery that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The<br>total rent on the plant is $148,000 per period. Depreciation is due to obsolescence, rather than wear and tear.<br>Required:<br>Prepare computations to show the dollar advantage or disadvantage per period of making the starters. (Do not round intermediate<br>calculations.)<br>Dollar advantage<br>Dollar disadvantage<br>

Extracted text: Per Total Unit Direct materials $ 4.65 Direct labour 4.05 Supervision Depreciation Variable manufacturing overhead 2.25 $90,000 1.50 60,000 0.90 Rent 0.45 18,000 Total production cost $13.80 A supervisor would have to be hired to oversee production of the starters. However, the company has sufficient idle tools and machinery that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $148,000 per period. Depreciation is due to obsolescence, rather than wear and tear. Required: Prepare computations to show the dollar advantage or disadvantage per period of making the starters. (Do not round intermediate calculations.) Dollar advantage Dollar disadvantage

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions ยป

Submit New Assignment

Copy and Paste Your Assignment Here