Question 1
1. Pete's Pizza Place has four pizza makers and ten other employees who take orders from customers and perform other tasks. The four pizza makers and the other employees are paid an hourly wage. How would one classify (1) the wages paid to the pizza makers and other employees and (2) materials (e.g., cheeses, sauce, etc.) used to make the pizza? Assume the activity is the number of pizzas made. | | Materials to make | | Employee Wages | the pizzas | a. | Fixed cost | Fixed cost | b. | Fixed cost | Variable cost | c. | Variable cost | Fixed cost | d. | Mixed cost | Variable cost | e. | Mixed cost | Mixed cost | | | Option A | | | Option B | | | Option C | | | Option D |
Question 2 The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: | Estimated | Cost Item | Unit Cost | Direct material | $32 | Direct labor | $20 | Variable manufacturing overhead | $15 | Fixed manufacturing overhead | $6 | Variable selling expense | $3 | Fixed selling expense | $4 | | | $70 | | | $38 | | | $67 | | | $52 | | | $18 |
What are the estimated variable costs per unit?
Question 3
Laner Company has the following data for the production and sale of 2,000 units. Sales price per unit | $800 per unit | Fixed costs: | | Marketing and administrative | $400,000 per period | Manufacturing overhead | $200,000 per period | Variable costs: | | Marketing and administrative | $50 per unit | Manufacturing overhead | $80 per unit | Direct labor | $100 per unit | Direct materials | $200 per unit | | | $380 | | | $430 | | | $480 | | | $730 |
What is the variable manufacturing cost per unit?
Question 4
Based on the information in #3 what is the total manufacturing