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selling 4,400 units. The following information relates to a company with a relevant range of activity from 2,000 to 8,000 units. They are currently producing
selling 4,400 units. The following information relates to a company with a relevant range of activity from 2,000 to 8,000 units. They are currently producing and The average cost per unit is $6.40 for direct materials; 83.30 for direct labor, and $2.00 for variable manufacturing overhead. The average fixed cost per unit is $3.60 for fixed manufacturing overhead; 5.90 for fixed selling expenses and S.75 for fixed administrative expenses. Variable selling expenses are $0.65 per unit and variable administrative expenses are $ 0.65 per unit. Required: (For questions a.-d. assume that 5,400 units are produced and sold.) a. Calculate the variable cost per unit sold. (Round "Per unit" answer to 2 decimal places.) b. Calculate the total amount of variable cost for the units sold. c. Calculate the average fixed manufacturing cost per unit produced. (Round "Per unit" answer to 2 decimal places.) d. Calculate the total amount of fixed manufacturing costs. places.) e. Calculate the incremental manufacturing cost the company will incur if production increases from 4,400 to 4,401 units. (Round "Per unit" answer to 1 decimal a. Variable cost per unit sold for 5,400 units b. Total variable costs for 5,400 units Average fixed manufacturing cost for 5,400 units Total fixed manufacturing overhead cost d. for 5,400 units e Incremental manufacturing cost
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