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[The following information applies to the questions displayed below., Diego Company manufactures one product that is sold for $77 per unit In two geographic regions-the
[The following information applies to the questions displayed below., Diego Company manufactures one product that is sold for $77 per unit In two geographic regions-the East and West regions. The following Information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 units. Varlable costs per unit: Manufacturing 27 12 Direct materlals Direct labor Varlable manufacturing overhead Varlable selling and administrative Flxed costs per year: Flxed manufacturing overhead Flxed selling and administrative expenses S86A(x% $ 456,000 The company sold 33,000 units Iin the East reglon and 10,000 units in the West region. It determined that 220,000 of Its fixed selling and administrative expenses is traceable to the West region, $170,000Is traceable to the East region, and the remalning $66,000 is a common fixed cost. The company will continue to Incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product
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