Question
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,900 units, its average costs per unit are
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,900 units, its average costs per unit are as follows:
Average
Cost per UnitDirect materials$5.90Direct labor$3.80Variable manufacturing overhead$1.50Fixed manufacturing overhead$4.40Fixed selling expense$0.65Fixed administrative expense$0.50Sales commissions$0.40Variable administrative expense$0.40
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 4,900 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 4,900 units?
c. If 5,900 units are sold, what is the variable cost per unit sold?(Round "Per unit" answer to 2 decimal places.)
d. If 5,900 units are sold, what is the total amount of variable costs related to the units sold?
e. If 5,900 units are produced, what is the average fixed manufacturing cost per unit produced?(Round "Per unit" answer to 2 decimal places.)
f. If 5,900 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 5,900 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?(Round "Per unit" answer to 2 decimal places.)
h. If the selling price is $23.40 per unit, what is the contribution margin per unit sold?(Round "Per unit" answer to 2 decimal places.)
i. If 3,900 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 3,900 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from 4,900 to 4,901 units?(Round "Per unit" answer to 2 decimal places.)
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