Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,800 units, its average costs per unit are

image text in transcribed
image text in transcribed
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,800 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 5.70 $ 3.75 $ 2.00 $ 4.10 $0.90 $ 0.75 $ 0.65 $ 0.65 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5.800 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,800 units? c. 16,800 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) d. If 6,800 units are sold, what is the total amount of variable costs related to the units sold? e. If 6,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.) f. If 6,800 units are produced, what is the total amount of fixed manufacturing cost incurred? g. If 6,800 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 $23.20 per unit, what is the contribution margin per unit sold (Round "Per unit" answer to 2 decimal places.) 1.1 4,800 units are produced, what is the total amount of direct manufacturing cost incurred? J. If 4,800 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 5,800 to 5,801 units? (Round "Per unit answer to 2 decimal places.) Total product cost b. Total period cost c. Variable cost per unit sold d. Total variable costs Average foxed manufacturing cost per unit Total forced manufacturing overhead cost Total manufacturing overhead cost Manufacturing overhead per unit a. Total product cost b. Total period cost c. Variable cost per unit sold d. Total variable costs e. Average fixed manufacturing cost per unit f. Total fixed manufacturing overhead cost g. Total manufacturing overhead cost Manufacturing overhead per unit h. Contribution margin per unit i. Total direct manufacturing cost j. Total indirect manufacturing cost k. Incremental manufacturing cost

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions