Answer the following questions using the information below Product ORD210 The Ea

Question

Answer the following questions using the information below Product ORD210 The East Company manufactures several different products. Unit costs associated with are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead 11 Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries $54 25 12 $115 Total the total variable costs per unit associated with Product ORD105 with 21) What is the percentage of respect to total cost? A) 72% B) 68% C) 75% D)70%

Explanation / Answer

Variable cost =Direct material + Direct manufacturing labor +variable manufacturing overhead +sales commission

           = 54+8+11+5

           = 78 per unit

Fixed manufacturing and administrative salaries is a fixed cost

Percentage of total variable cost per unit to total cost = 78/ 115

                   = .678 or 67.8%   [rounded to 68%]

correct option is "B"

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