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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 selling 5,300
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 selling 5,300 units. The average cost per unit is 85.20 for direct materials: $3,50 for direct labor, and 51 50 for variable manufacturing overhead. The average fixed cost per unit is $3.60 for fixed manufacturing overhead: 5.65 for fixed selling expenses and 5.50 for fixed administrative expenses. Variable selling expenses are $0.40 per unit and variable administrative expenses are $0.40 per unit. Required: (For questions a.-d. assume that 6,300 units are produced and sold) a Calculate the variable cost per unit sold. (Red "Per airwer to decimal places b. Calculate the total amount of variable cost for the units sold Calculate the average fixed manufacturing cost per unit produced. Roederera2 decimal places) d. Calculate the total amount of fixed manufacturing costs e Calculate the incremental manufacturing cost the company will incur if production increases from 5,300 to 5,301 units and wer unit usoner te? decimai places.) a. Variable cost per unit sold for 6,300 units b. Total variable costs for 6.300 units Average fixed manufacturing cost for C. 6,300 units Total foxed manufacturing overhead cost d. for 6,300 units e Incremental manufacturing cost
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