Question
Problem 2 A Tank corporation's relevant range of activity is 9,000 units to 16,000 units. When it produces and sells 10,000 units, its average costs
Problem 2 A Tank corporation's relevant range of activity is 9,000 units to 16,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials
$5.30
Direct labor
$3.65
Variable manufacturing overhead
$1.50
Fixed manufacturing overhead
$3.90
Fixed selling expense
$0.75
Fixed administrative expense
$0.60
Sales commissions
$0.50
Variable administrative expense
$0.50
(Round "Per unit" answer to 2 decimal places.)
a. For financial reporting purposes, what is the total product costs incurred to make 10,000 units?
b. For financial reporting purposes, what is the total period costs incurred to sell 10,000 units?
c. If 15,000 units are sold, what is the total variable costs related to the units sold?
d. If 15,000 units are produced, what is the total fixed manufacturing cost incurred?
e. What is the product cost per unit when 15,000 units are produced?
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