Module+2000+VI++Homework

VI. Module 2000 Homework ka


 * Homework: Exercise 2-1 **

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

1. Calculate the prime cost per unit.

2. Calculate the conversion cost per unit.
3. Calculate the total variable product per unit.

4. Calculate the total product (manufacturing cost) 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 ** Cornerstones of Cost Accounting Hansen & Mowen