Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paolucci Corporation's relevant range of activity is 6,600 units to 14,000 units. When it produces and sells 10,300 units, its average costs per unit are

Paolucci Corporation's relevant range of activity is 6,600 units to 14,000 units. When it produces and sells 10,300 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$ 6.80Direct labor$ 3.70Variable manufacturing overhead$ 1.70Fixed manufacturing overhead$ 3.10Fixed selling expense$ 1.00Fixed administrative expense$ 0.70Sales commissions$ 0.95Variable administrative expense$ 0.60

If 9,300 units are sold, the variable cost per unit sold is closest to:

image text in transcribed
Paolucci Corporation's relevant range of activity is 6,600 units to 14,000 units. When it produces and sells 10,300 units, it average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.80 Direct labor $ 3. 70 Variable manufacturing overhead $ 1. 70 Fixed manufacturing overhead $ 3. 10 Fixed selling expense $ 1.00 Fixed administrative expense $ 0. 70 Sales commissions $ 0.95 Variable administrative expense $ 0. 60 If 9,300 units are sold, the variable cost per unit sold is closest to: Multiple Choice O $18.55 O $12.20 O $15.30 O $13.75

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial And Managerial Accounting

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

6th Edition

0134486838, 978-0134486833

More Books

Students also viewed these Accounting questions

Question

In Exercises find the limits. x + 1 lim x-2 3x - 2x + 5

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago