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Foundational [LO 6-1, LO6-2, LO6-3, LO6-4] The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $74
Foundational [LO 6-1, LO6-2, LO6-3, LO6-4] The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $74 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 45,000 units and sold 40,000 units. Variable costs per unit: Manufacturing Direct materials Direct labor 18 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 585,000 Fixed manufacturing overhead Fixed selling and administrative expenses 423,000 The company sold 30,000 units in the East region and 10,000 units in the West region. determined that of its fixed selling and administrative expenses is traceable to the west region, $140,ooo is traceable to East region, and the remaining $93,000 is a common fixed cost. The company will continue the to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product
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