The following data apply to the provision of psychological testingservices:Sales priceper unit (1...The following...

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Accounting

The following data apply to the provision of psychological testingservices:

Sales priceper unit (1 unit = 1 test plus feedback to client)$340
Fixed costs(per month):
Selling andadministration16,000
Productionoverhead (e.g., rent of testing facilities)25,000
Variable costs(per test):
Labor foroversight and feedback145
Outsourcedtest analysis15
Materials usedin testing6
Productionoverhead11
Selling andadministration (e.g., scheduling and billing)20
Number oftests per month2,000tests

Required:

Calculate theamount for each of the following (one unit = one test) if thenumber of tests is 2,000 per month. Also calculate if the number oftests decreases to 1,250 per month. (Do not round intermediate calculations.Round your final answers to the nearest wholedollar.)

2,000 Tests1,250 Tests
a.Variable production cost per unit.
b.Variable cost per unit.
c.Full cost per unit.
d.Full absorption cost per unit.
e.Prime cost per unit.
f.Conversion cost per unit.
g.Contribution margin per unit.
h.Gross margin per unit.

Answer & Explanation Solved by verified expert
3.7 Ratings (558 Votes)
2000 Tests 1250 Tests a Variable production cost per unit 177 177 b Variable cost per unit 197 197 c Full cost per unit 2175 2298 d Full absorption cost per unit 1895 197 e Prime cost per unit 166 166 f Conversion cost per unit 1835 191 g Contribution margin per unit 143 143 h Gross margin per unit    See Answer
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Transcribed Image Text

In: AccountingThe following data apply to the provision of psychological testingservices:Sales priceper unit (1...The following data apply to the provision of psychological testingservices:Sales priceper unit (1 unit = 1 test plus feedback to client)$340Fixed costs(per month):Selling andadministration16,000Productionoverhead (e.g., rent of testing facilities)25,000Variable costs(per test):Labor foroversight and feedback145Outsourcedtest analysis15Materials usedin testing6Productionoverhead11Selling andadministration (e.g., scheduling and billing)20Number oftests per month2,000testsRequired:Calculate theamount for each of the following (one unit = one test) if thenumber of tests is 2,000 per month. Also calculate if the number oftests decreases to 1,250 per month. (Do not round intermediate calculations.Round your final answers to the nearest wholedollar.)2,000 Tests1,250 Testsa.Variable production cost per unit.b.Variable cost per unit.c.Full cost per unit.d.Full absorption cost per unit.e.Prime cost per unit.f.Conversion cost per unit.g.Contribution margin per unit.h.Gross margin per unit.

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