Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balerio Corporation's relevant range of activity is 8,000 units to 13,000 units. When it produces and sells 10,000 units, its average costs per unit are

Balerio Corporation's relevant range of activity is 8,000 units to 13,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.80 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 14.00 Fixed selling expense $ 2.60 Fixed administrative expense $ 1.60 Sales commissions $ 0.40 Variable administrative expense $ 0.30 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.) b. If 12,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If 12,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations.) d. If the selling price is $18.80 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) e. What incremental manufacturing cost will the company incur if it increases production from 10,000 to 10,001 units? (Round "Per unit"

a.Total product cost

b.Variable cost per unit sold

c.Total variable costs

d.Contribution margin per unit

e.Incremental manufacturing cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy And The Changing Landscape Of Integrated Reporting

Authors: Ioana Dragu

1st Edition

1522536221, 9781522536222

More Books

Students also viewed these Accounting questions

Question

=+f) What is the average size of the error standard deviation?

Answered: 1 week ago

Question

=+ Is the information documented and verifiable?

Answered: 1 week ago

Question

=+ Is the information presented in an objective manner?

Answered: 1 week ago