Question
In: Accounting
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows:
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows:
| Average Cost per Unit |
|||
| Direct materials | $ | 6.00 | |
| Direct labor | $ | 3.90 | |
| Variable manufacturing overhead | $ | 1.60 | |
| Fixed manufacturing overhead | $ | 4.50 | |
| Fixed selling expense | $ | 0.70 | |
| Fixed administrative expense | $ | 0.55 | |
| Sales commissions | $ | 0.45 | |
| Variable administrative expense | $ | 0.45 | |
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 4,800 units? Answer: 76800
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 4,800 units? Answer: 10320
c. If 5,800 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
d. If 5,800 units are sold, what is the total amount of variable costs related to the units sold?
e. If 5,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.)
f. If 5,800 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 5,800 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.)
h. If the selling price is $23.50 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)
i. If 3,800 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 3,800 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from 4,800 to 4,801 units? (Round "Per unit" answer to 2 decimal places.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
axbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and...
axbury Corporation's relevant range of activity is 3,000 units
to 7,000 units. When it produces and sells 5,200 units, its average
costs per unit are as follows:
Average
Cost per Unit
Direct materials
$
5.10
Direct labor
$
3.45
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
3.50
Fixed selling expense
$
0.60
Fixed administrative expense
$
0.45
Sales commissions
$
0.35
Variable administrative expense
$
0.35
Required:
a. For financial reporting purposes, what is the total amount of...
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and...
Saxbury Corporation's relevant range of activity is 3,000 units
to 7,000 units. When it produces and sells 4,500 units, its average
costs per unit are as follows: Average Cost per Unit Direct
materials $ 6.30 Direct labor $ 3.20 Variable manufacturing
overhead $ 1.90 Fixed manufacturing overhead $ 3.90 Fixed selling
expense $ 0.85 Fixed administrative expense $ 0.70 Sales
commissions $ 0.60 Variable administrative expense $ 0.60
Required:
a. If 5,500 units are sold, what is the variable cost...
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and...
Saxbury Corporation's relevant range of activity is 3,000 units
to 7,000 units. When it produces and sells 4,600 units, its average
costs per unit are as follows:
Average
Cost per Unit
Direct materials
$
6.20
Direct labor
$
3.20
Variable manufacturing overhead
$
1.80
Fixed manufacturing overhead
$
4.20
Fixed selling expense
$
0.80
Fixed administrative expense
$
0.65
Sales commissions
$
0.55
Variable administrative expense
$
0.55
Required:
a. If 5,600 units are sold, what is the variable cost...
axbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and...
axbury Corporation's relevant range of activity is 3,000 units
to 7,000 units. When it produces and sells 5,700 units, its average
costs per unit are as follows:
Average
Cost per Unit
Direct materials
$
5.60
Direct labor
$
3.70
Variable manufacturing overhead
$
1.90
Fixed manufacturing overhead
$
3.80
Fixed selling expense
$
0.85
Fixed administrative expense
$
0.70
Sales commissions
$
0.60
Variable administrative expense
$
0.60
Required:
a. For financial reporting purposes, what is the total amount of...
8. Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...
8. Saxbury Corporation's relevant range of activity is 3,000
units to 7,000 units. When it produces and sells 4,300 units, its
average costs per unit are as follows:
Average
Cost per Unit
Direct materials
$
6.50
Direct labor
$
3.20
Variable manufacturing overhead
$
1.30
Fixed manufacturing overhead
$
3.40
Fixed selling expense
$
0.60
Fixed administrative expense
$
0.45
Sales commissions
$
0.35
Variable administrative expense
$
0.35
Required:
a. For financial reporting purposes, what is the total amount...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:Required:1. Assume the cost object is units of production:a. What is the total direct manufacturing cost incurred to make 20,000 units?b. What is the total indirect manufacturing cost incurred to make 20,000 units?2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units.a. How much total manufacturing cost is...
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:
Refer to the data given in Exercise 1-7. Answer all questions independently.
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?
3. For financial accounting purposes,...
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it producesand sells 10,000 units, its average costs per unit are as follows:Average Costper UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . $6.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . ....
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
AmountPer Unit
Direct materials
$
5.60
Direct labor
$
3.10
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
3.60
Fixed selling expense
$
2.60
Fixed administrative expense
$
2.20
Sales commissions
$
1.20
Variable administrative expense
$
0.45
13.
If the selling...
Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and...
Dake Corporation's relevant range of activity is 2,000 units to
5,000 units. When it produces and sells 3,500 units, its average
costs per unit are as follows:
Average Cost per Unit
Direct materials
$
6.75
Direct labor
$
3.90
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.00
Fixed selling expense
$
1.10
Fixed administrative expense
$
0.80
Sales commissions
$
0.90
Variable administrative expense
$
0.80
For financial reporting purposes, the total amount of product
costs incurred to...
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