Question
Glisan Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are
Glisan Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:
|
| Average Cost per Unit |
| Direct materials | $5.75 |
| Direct labor | $3.00 |
| Variable manufacturing overhead | $1.60 |
| Fixed manufacturing overhead | $4.50 |
| Fixed selling expense | $0.75 |
| Fixed administrative expense | $0.60 |
| Sales commissions | $1.50 |
| Variable administrative expense | $0.55 |
1- For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
2- For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?
3- What is the variable manufacturing cost per unit?
4- What is the prime cost per unit?
5- If 8,000 units are sold, what is the fixed cost per unit?
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