1) Chapter 1 Review Problem I Widdig Corporation's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average cost per unit are as follows: 2) 6+3+1 Questions: 15 Un Average Cost per Direct Materials $00 Direct Labor $3.50 Variable manufacturing overhead. $1.50 Fixed manufacturing overhead $4.00 Fixed Selling Expense $3.00 6001 350 Fixed Administrative Expense $2.00 Sales Commissions. $1.00 Variable administrative expense $0.50 1) 4X10,000 4,000 What is the TOTAL fixed manufacturing overhead costs? OM +D+ varible Manul Loverhead What is the total product costs to make 10,000 units? 95 mufacturing fixed manufacturing 100% fixed selling expense tsates 3 What is the total period costs incurred to sell 10,000 units Commissions = 3 + 1+ 2+150 = 8.60 10000 4 What is the total productsts to make 8,000 units? =65,000 6+3.50 +250 +4 = 14x8000 = 5 What is the total period costs incurred to sell 8,000 units? over head: 2 tive Peuse riable adminstrative 112,000 40000. 84100 00 -40000 6 If the selling price is $22 per unit, what is the contribution margin per unit? 22X(0.006 228000 800 407 480 t 08,000 180,00 0 2) 3+1+21.60 $6.50