Question
I -Told-you So Organization's relevant range of production is 8,000 units to 12,500 units. When it produces and sells 11,000units, its unit costs are asfollows:
I -Told-you So Organization's relevant range of production is 8,000 units to 12,500 units. When it produces and sells 11,000units, its unit costs are asfollows:
Amount
Per Unit
Direct materials.. . .. ... ... . .. . . . . . . . . . . . .. . . . ..$9.50
Direct labour. . . .. . .. ... . .. . .. . . . . . . ... . . . . . . ...$4.75
Variable manufacturing overhead. . . .. . . . . . . . .. . .. . .$2.50
Fixed manufacturing overhead. . . . . . . . . ... . . .. . .. ..$5.50
Fixed selling expense .. . . . . . . . . . . .. . . . . . . . .. . .. ..$3.70
Fixed administrative expense . . . .. . . . . . . . . . . .. . .. . .$2.50
Sales commissions . ............ . . . . . . . . .... . . . . .$2.00
Variable administrative expense. . . . .. . . . . . . . .. . . . . .$0.75
A) For financial accounting purposes, what is the total amount of product costs incurred to make
11,000 units?
B) For financial accounting purposes, what is the total amount of period costs incurred to sell
10,000 units?
C)If 8,000 units are sold, what is the variable cost per unit sold?
D) If 12,500 units are sold, what is the variable cost per unit sold?
E) If 8,000 units are sold, what is the total amount of variable costs related to the units sold?
F)If 12,500 units are sold, what is the total amount of variable costs related to the units sold?
G)If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
H)If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?
I) If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to sup- port this level of production?
J) If 12.500 units are produced, what is the total amount of fixed manufacturing cost incurred to
support this level of production?
K) If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to
support this level of production? What is this total amount expressed on a per unit basis?
L) If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred?
Side Hustle Inc. operates a fleet of delivery trucks in Toronto. Analysis shows that if a truck is driven 115,000 kilometres during a year, the average operating cost is 12.4 cents ($0.124) per kilometre. If a truck is driven only 75,000 kilometres during a year, the average operating cost increases to 14.4 cents ($0.144) per kilometre.
Required:
A) Using the high-low method, estimate the variable and fixed cost elements of the annual cost of
truck operation
B) If a truck was driven 87,000 kilometres during a year, what total cost would you expect to be
incurred'!
Please write calculation
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