Question
3.If the company expects to produce and sell 35,000 units in 2021, and this activity level is within the relevant range, what will the manufacturing
3.If the company expects to produce and sell 35,000 units in 2021, and this activity level is within the relevant range, what will the manufacturing cost per unit be in 2021?
4.Is the manufacturing cost per unit in 2021 that you calculated in question #3 the same as the manufacturing cost per unit in 2020? Explain why or why not (no calculations needed). Which year will have the highest manufacturing cost per unit: 2019, 2020, or 2021? Explain why (no calculations needed).
5.If the company expects to produce and sell 35,000 units in 2021, and this activity level is within the relevant range, what will the total period cost be in 2021?
6. Is the total period cost in 2021 that you calculated in question #5 the same as the total period cost in 2019? Explain why or why not (no calculations needed). Which year will have the highest total period cost: 2019, 2020, or 2021? Explain why (no calculations needed).
Use the following data for questions 1 6: Company ABC provides the following data about its operations from 2019, when it produced and sold 30,000 units, and from 2020, when it produced and sold 40,000 units. According to the company, all its costs are driven by the units produced and sold in the period: Direct materials costs Direct labor costs Manufacturing overhead costs Selling costs Administrative costs 2019 $298,500 $437,400 $2,144,200 $1,264,800 $1,886,500 2020 $398,000 $583,200 $2,333,600 $1,479,400 $1,953,000Step by Step Solution
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