Business, 10.03.2020 19:07 monifaWilson

The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and

covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents.

The relevant range is from 0 - 3,500 units.

Sales $50 sales price per name tent

Costs:

Variable Costs Per Tent (3,000 name tents produced and sold)

Direct materials 8

Direct labor 7

Manufacturing overhead 8

Period Costs 5

Fixed Costs

Manufacturing overhead 10

Period Costs 5

1) If 10,000 tents are produced and sold, what is the product cost per tent?

2) If 15,000 tents are produced and sold, what is the product cost per tent?

3) If 2,000 tents are produced and sold, what is the product cost per tent?

4) What is the fixed cost per tent at 1,000 tents (including period costs) produced and sold?

5) What are total period costs at 1,000 name tents (produced and sold)?

Answers: 3

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The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and

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