Baxter

Company

has

a

relevant

range

of

production

between

15,000

and

30,000

units.

The

following

cost

data

represents

average

variable

costs

per

unit

for

25,000

units

of

production.

Average

Cost

per

Unit

Direct

materials

......................................................

$

13

Direct

labour

...........................................................

$

9

Fixed

manufacturing

overhead

..............................

$

6

Variable

manufacturing

overhead

.........................

$

2

Fixed

selling

and

administrative

expenses

.............

$

8

Variable

sales

commissions

....................................

$

14

Requirements:

Using

the

costs

data

from

Baxter

Company,

answer

the

following

questions:

1.

(a)

If

15,000

units

are

produced,

what

is

the

variable

manufacturing

cost

per

unit

to

manufacture

the

units?

(b)

If

28,000

units

are

produced,

what

is

the

variable

manufacturing

cost

per

unit

to

manufacture

the

units?

2.

(a)

If

21,000

units

are

produced,

what

are

the

total

variable

manufacturing

costs

to

manufacture

the

units?

(b)

If

29,000

units

are

produced,

what

are

the

total

variable

manufacturing

costs

to

manufacture

the

units?

3.

(a)

If

17,000

units

are

produced,

what

are

the

total

manufacturing

overhead

costs

incurred

to

manufacture

the

units?

(b)

If

23,000

units

are

produced,

what

are

the

total

manufacturing

overhead

costs

incurred

to

manufacture

the

units?

4.

(a)

If

30,000

units

are

produced,

what

are

the

manufacturing

overhead

costs

per

unit

incurred

to

manufacture

the

units?

(b)

If

15,000

units

are

produced,

what

are

the

manufacturing

overhead

costs

per

unit

incurred

to

manufacture

the

units?

5.

If

23,000

units

are

produced

and

sold,

what

are

the

total

costs

incurred

to

manufacturing

and

sell

all

the

units?