(Solved Homework): Edeen Corporation has provided the following production and total cost data for two levels of monthly production volume….

Edeen Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production Volume 5,000 units 6,000 units Direct materials $311,000 $373,200 Direct Labor $171,500 $205,800 Manufacturing Overhead $415,000 $427,800 The best estimate of total variable manufacturing cost per unit is: $96.50 $109.30 $62.20 $12.80

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Production Volume 5,000 units 6,000 units

Manufacturing Overhead $415,000 $427,800

total variable manufacturing overhead cost per unit=high Manufacturing Overhead-low Manufacturing Overhead/high volume-low volume

=$427,800-$415,000/6,000-5,000

=$12,800/1,000

=$12.80 per unit

Production Volume 5,000 units 6,000 units

Direct materials $311,000 $373,200

Direct Labor $171,500 $205,800

total direct costs=$482,500 $579,000

direct cost per unit=$96.50 $96.50

variable overhead

cost per unit =$12.80 $12.80

The best estimate of total variable manufacturing cost per unit =$96.50+$12.80=$109.30

So the option is B.

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