Posted: September 16th, 2017

Abel Furniture has determined the following Unit production costs for a table: Direct Materials

cost

Abel Furniture has determined the following Unit production costs for a table:
Direct Materials                                 $10
Direct Labor                                      $12
Indirect Materials                               $4
Indirect Labor                                    $3
Fixed MOH                                         $5
Expected level of output                    10,000 units
Relevant Range                                 5,000 to 15,000
Fixed MOH per unit is calculated at the expected level of output of 10,000 units.
Required:
1. Determine the total Fixed MOH
2. What is the total variable costs per table?
3. What is the total Variable MOH per table?
4. Calculate the total variable costs at the expected level of output of 10,000
5 Calculate the cost per unit or table at 10,000 units of output.
6.  If the firm were to produce 15,000 units, what is the Fixed MOH at this level?
7.  What is the total variable cost per unit (table) at 15,000 units of output?

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