Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 65000 Direct labor 170000 Variable overhead 85000 Fixed overhead 175000 If Sheridan buys the part from an outside supplier, $30000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E? $99 $70 $93 $64

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
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Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production:

Direct materials
$ 65000
Direct labor
170000
Variable overhead
85000
Fixed overhead
175000


If Sheridan buys the part from an outside supplier, $30000 of the fixed overhead is avoidable.

What is the relevant cost per unit of part A12E?

$99
$70
$93
$64
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