Chapter 1: Cost Concepts

Luxe Corporation has provided the following information regarding a single product.

	Cost per unit	Cost per period
Direct materials	$7.05
Direct labor	$3.65
Variable manufacturing overhead	$1.60
Fixed manufacturing overhead		$113,400
Sales commissions	$1.50
Variable and administrative expense	$0.55
Fixed selling and administrative expense		$36,450

Required:

1.) For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?

2.) For financial reporting purposes, what is the total amount of period costs incurred to sell 9,000 units?

3.) If 10,000 units are sold, what is the variable cost per unit sold?

4.) If 10,000 units are sold, what is the total amount of variable costs related to the units sold?

5.) If 10,000 units are produced, what is the total amount of manufacturing overhead cost incurred?

6.) If the selling price is $21.60 per unit, what is the contribution margin per unit sold?

7.) If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?

8.) If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

9.) What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Please provide an answer and explanation to the above questions. THANK YOU!!