Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TB Problem Qu. 1-275 Saxbury Corporation's relevant range of activity ... Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it

TB Problem Qu. 1-275 Saxbury Corporation's relevant range of activity ... Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,300 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.50 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 0.65 Fixed administrative expense $ 0.50 Sales commissions $ 0.40 Variable administrative expense $ 0.40 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,300 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,300 units? c. If 6,300 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) d. If 6,300 units are sold, what is the total amount of variable costs related to the units sold? e. If 6,300 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.) f. If 6,300 units are produced, what is the total amount of fixed manufacturing cost incurred? g. If 6,300 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 $22.70 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) i. If 4,300 units are produced, what is the total amount of direct manufacturing cost incurred? j. If 4,300 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 5,300 to 5,301 units? (Round "Per unit" answer to 2 decimal places.)

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

MBA Accounting

Authors: Roger Hussey

1st Edition

0230303374, 9780230303379

More Books

Students also viewed these Accounting questions