The information that follows is for Nancy’s Name Tents for theyear ended December 31, 2015 and
covers questions 26-31. All per unit costs below are based onthe production and sale of 3,000 name tents.
The relevant range is from 0 - 3,500 units.
Sales $50 sales price per name tent
Costs:
VariableCosts Per Tent (3,000 name tents produced and sold)
Direct materials 8
Directlabor 7
Manufacturingoverhead 8
Period Costs 5
Fixed Costs
Manufacturingoverhead 10
PeriodCosts 5
1) If 10,000 tents are produced and sold, what is the productcost per tent?
2) If 15,000 tents are produced and sold, what is theproduct cost per tent? ???????
3) If 2,000 tents are produced and sold, what is theproduct cost per tent?
???????4) What is the fixed cost per tent at 1,000 tents(including period costs) produced and sold?
???????5) What are total period costs at 1,000 name tents(produced and sold)? ???????
