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Klein Company's relevant range of production is from 10,000 units to 20,000 units per year. The following table provides the average cost per unit for
Klein Company's relevant range of production is from 10,000 units to 20,000 units per year. The following table provides the average cost per unit for the last year. Number of units produced and sold by Klein last year 12,500 units Average cost per unit Direct materials $7.20 Direct labor $4.20 Variable manufacturing overhead $1.70 Fixed manufacturing overhead $5.20 Fixed selling expense $3.70 Fixed administrative expense $2.70 Sales commissions (paid per unit of sales) $1.20 Variable administrative expense $0.70 Klein's expected production and sales for next year 14,000 units Klein's expected production and sales for year after next 11,000 units Required: Part A) For financial accounting purpose, what is the total amount of product costs incurred last year? (2 points) Part B) For financial accounting purpose, what is the total amount of period costs incurred last year? (2 points) Part 2) Find the estimated amount of total products for next year ( 2 points) Part D) Find the estimated amount of period costs for year after next (2 points)
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