ABC Company estimated its unit cost of producing and selling 12,000 unitsper month as follows:

UNIT COST

Direct Materials Used $32

Direct Manufacturing Labor $20

Variable Manufacturing Overhead $15

Fixed Manufacturing Overhead $6

Variable Selling Expenses $3

Fixed Selling Expenses $4

Total Costs $80

The cost driver for manufacturing costs is units produced and the cost driver for selling expenses is units sold.

The relevant range is 7,000 units to 14,000 units.

Required:

a) Compute the fixed manufacturing cost per unit for monthly production of10,000 units.

b) Compute the fixed selling expenses per unit for monthly production of 10,000 units. c) Compute the total costs for a month when 9,000 units are produced and 8,000 units are sold.