Exercise M-7 (Part Level Submission) (a) Open Show Work Exercise M-7 (Part Level

Question

Exercise M-7 (Part Level Submission)

(a)

Open Show Work

Exercise M-7 (Part Level Submission)

Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit Total Direct materials $420 Direct labor $310 Variable manufacturing overhead $  75 Fixed manufacturing overhead $1,494,600 Variable selling and administrative expenses $  61 Fixed selling and administrative expenses $  578,760
The company has a desired ROI of 18%. It has invested assets of $65,154,667. It anticipates production of 3,180 units per year.

(a)

Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
Fixed manufacturing overhead $

per unit Fixed selling and administrative expenses $

per unit Click if you would like to Show Work for this question:

Open Show Work

Explanation / Answer

Particulars Manufacturing Admin and selling Fixed Overhead (A)      1,494,600.00                578,760.00 No of Units (B)              3,180.00                     3,180.00 Per Unit (A/B)                  470.00                         182.00

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.