At Goldfish Enterprises, the costs for 15,000 hours of consultant services are $345,000 and the costs for 7,000 hours are $185,000. What are the variable costs per unit for Goldfish?
- $20.00
- $23.00
- $26.43
- $10.67
Midlands Products estimates the costs of one unit of a product as
|
Direct materials |
40 kg @ $2.50 per kg |
|
Direct labour |
7 hours machining @ $12 per hour |
|
4 hours finishing @ $7 per hour |
Variable production overhead is applied at a rate of $5 per direct labour hour
Fixed production overhead is $1,000,000, based on a production volume of 12,500 units