Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 65000 Direct labor 170000 Variable overhead 85000 Fixed overhead...


Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production:

























Direct materials

$ 65000

Direct labor

170000

Variable overhead

85000

Fixed overhead

175000




If Sheridan buys the part from an outside supplier, $30000 of the fixed overhead is avoidable.


What is the relevant cost per unit of part A12E?



$99

$70

$93

$64



Jun 10, 2022
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