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Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing Direct naterials Direct labor 21 16 Variable manufacturing overhead $ Variable selling and adninistrative $ Fixed costs per year: Fixed nanufacturing overhead Fixed selling and administrative expanse $1,e6e,eee 557,8ee The company sold 36.000 units In the East region and 12.000 units in the West region. It determined that $270.000 of its fixed selling and remaining S67,000 is a comimon fixed experise. The company will continue to iicur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. administrative expense s traceable to the West region, $220,000 is traceable to the East region, and the
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