question archive 7-18 Test Bank for Managerial Accounting, Sixth Edition 79

7-18 Test Bank for Managerial Accounting, Sixth Edition 79

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7-18 Test Bank for Managerial Accounting, Sixth Edition 79. Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 55,000 Direct labor 160,000 Variable overhead 75.000 Fixed overhead 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E? a. $58 b. $85 c. $93 d. $66

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