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A company's relevant range of production is 18,000 to 22,000 units. When it produces 20,000 units, average costs per unit are as follows: Direct Labor
A company's relevant range of production is 18,000 to 22,000 units. When it produces 20,000 units, average costs per unit are as follows:
Direct Labor - $7.00
Direct Materials - $4.00
Variable manufacturing overhead - $1.50
Fixed manufacturing overhead - $5.00
Fixed selling expense - $3.50
Fixed admin expense - $2.50
Sales commissions - $1.00
Variable admin expense - $.50
- For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units?
- For financial accounting purposes, what is the total amount of period costs incurred to sell 18, 000 units?
What is the formula I need to use to calculate these two costs?
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