Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6 comma 300 units, are as follows: Direct materials $ 4.20 Direct labor $ 4.30 Variable manufacturing overhead $ 3.40 Fixed manufacturing overhead $ 1.30 Total cost $ 13.20 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part?

$11.90

Explanation:

GIVEN THE FOLLOWING ;

Direct material = $4.20

Direct labor = $4.30

Variable manufacturing overhead = $3.40

Fixed manufacturing overhead = $1.30

Total cost = $13.20

However, in calculating the manufacturing cost of an item or part as in the question above, Fixed manufacturing overhead cost is excluded as this expenses are not directly related to the cost of

manufacturing the item or part in question. Fixed manufacturing cost are unavoidable and doest not change with productivity level.

Therefore, highest price per unit for the part is given by;

Direct material Cost + Direct labor cost + variable manufacturing overhead

$4.20 + $4.30 + $3.40 = $11.90 ( highest price per unit).

i tried to get the answer but i could not find it

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability