Question
1) Dake Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit
1) Dake Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Direct materials $ 7.05
Direct labor $ 3.20
Variable manufacturing overhead $ 1.80
Fixed manufacturing overhead $ 3.30 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 make 5,000 units is closest to
2)Dake Corporation's relevant range of activity is 2,300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows:
Direct materials $ 6.80
Direct labor $ 4.00
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 2.50
Fixed selling expense $ 1.15
Fixed administrative expense $ 0.85
Sales commissions $ 0.95
Variable administrative expense $ 0.85
If 2,900 units are produced, the total amount of direct manufacturing cost incurred is closest to
3)Dake Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows:
Direct materials $ 6.40
Direct labor $ 3.20
Variable manufacturing overhead $ 1.15
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.75
Fixed administrative expense $ 0.45
Sales commissions $ 0.55
Variable administrative expense $ 0.45
If 3,400 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
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