39 The following information relates to a company with a relevant range of activity from 2,000 to 8,000 units. They are

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39 The Following Information Relates To A Company With A Relevant Range Of Activity From 2 000 To 8 000 Units They Are 1 (36.4 KiB) Viewed 11 times

39 The following information relates to a company with a relevant range of activity from 2,000 to 8,000 units. They are currently producing and selling 4,500 units. The average cost per unit is $6.30 for direct materials: $3.20 for direct labor; and $1.90 for variable manufacturing overhead. The average fixed cost per unit is $3.90 for fixed manufacturing overhead: $.85 for fixed selling expenses and $.70 for fixed administrative expenses. Variable selling expenses are $0.60 per unit and variable administrative expenses are $ 0.60 per unit. Required: (For questions a.-d. assume that 5,500 units are produced and sold.) a. Calculate the variable cost per unit sold. (Round "Per unit" answer to 2 decimal places) b. Calculate the total amount of variable cost for the units sold. c. Calculate the average fixed manufacturing cost per unit produced. (Round "Per unit" answer to 2 decimal places.) d. Calculate the total amount of fixed manufacturing costs. e Calculate the incremental manufacturing cost the company will incur if production increases from 4,500 to 4,501 units. (Round "Per unit" answer to 2 decimal places) a. Vanable cost per unit sold for 5,500 units b Total variable costs for 5,500 units Average foxed manufacturing cost for 5,500 units C d Total fixed manufacturing overhead cost for 5,500 units e Incremental manufacturing cost