Consider the following data of the Vancouver Company for the year 2019. $10,000 Leasing costs-plant 100,000 Amortization equip. 7,000 Property taxes-equip. 86,000 Fire insurance-equip. 680,000 Direct material purchases 120,000 Direct materials 12/31/2019 210,000 Sales 400,000 Sales commissions 30,000 Sales salaries Sandpaper-Plant Materials handling Plant Coolants-Plant Indirect manufacturing labour Direct manufacturing labour Direct materials, 1/1/2019 Finished goods, 1/1/2019 Finished goods, 12/31/2019 WIP. 1/1/2019 WIP. 12/31/2019 A) $0.119 Administration costs What is the unit cost for the plant leasing costs for 2019 assuming plant leasing costs are for the production of 1,014,000 units? B) 50.118 C) 50.110 20,000 Advertising costs 250,000 D) $0.900 $120,000 70,000 10,000 5,000 980,000 86,000 4,000,000 200,000 180,000 150.000

Survey of Accounting (Accounting I)
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ISBN:9781305961883
Author:Carl Warren
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Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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Consider the following data of the Vancouver Company for the year 2019:
$10,000 Leasing costs-plant
100,000 Amortization- equip.
7,000 Property taxes-equip.
Sandpaper-Plant
Materials handling Plant
Coolants-Plant
Indirect manufacturing labour
Direct manufacturing labour
Direct materials, 1/1/2019
Finished goods, 1/1/2019
Finished goods, 12/31/2019
WIP, 1/1/2019
WIP. 12/31/2019
A) $0.119
B) $0.118
86,000 Fire insurance-equip.
680,000 Direct material purchases
120,000 Direct materials 12/31/2019
210,000 Sales
400,000 Sales commissions
30,000 Sales salaries
20,000 Advertising costs
250,000
Administration costs
What is the unit cost for the plant leasing costs for 2019 assuming plant leasing costs are for the production of 1,014,000 units?
C) $0.110
D) $0.900
$120,000
70,000
10,000
5,000
980,000
86,000
4,000,000
200,000
180,000
150,000
Transcribed Image Text:Consider the following data of the Vancouver Company for the year 2019: $10,000 Leasing costs-plant 100,000 Amortization- equip. 7,000 Property taxes-equip. Sandpaper-Plant Materials handling Plant Coolants-Plant Indirect manufacturing labour Direct manufacturing labour Direct materials, 1/1/2019 Finished goods, 1/1/2019 Finished goods, 12/31/2019 WIP, 1/1/2019 WIP. 12/31/2019 A) $0.119 B) $0.118 86,000 Fire insurance-equip. 680,000 Direct material purchases 120,000 Direct materials 12/31/2019 210,000 Sales 400,000 Sales commissions 30,000 Sales salaries 20,000 Advertising costs 250,000 Administration costs What is the unit cost for the plant leasing costs for 2019 assuming plant leasing costs are for the production of 1,014,000 units? C) $0.110 D) $0.900 $120,000 70,000 10,000 5,000 980,000 86,000 4,000,000 200,000 180,000 150,000
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