1 A B с D E Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 20,000 units of production. 2 3 Direct Materials 4 Direct Labor 5 Indirect Materials 6 Fixed Manufacturing overhead $10.00 Material $9.00 Labor $3.00 Material $6.00 Fixed Overhead 7 Variable manufacturing overhead $2.00 Variable Overhead 8 Fixed administrative expense $8.00 Fixed Period 9 Variable sales commission $14.00 Variable ☑ Overhead 10 11 Using the above cost data, answer the following questions: 12 13 At 20,000 units of production, what is the per unit variable cost At 20,000 units of production, what is the per unit fixed cost If the Company's production were to increase to 25,000 14 15 What is the total fixed cost 16 17 18 What is the per unit fixed cost What is the total variable cost What is the per unit variable cost
1 A B с D E Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 20,000 units of production. 2 3 Direct Materials 4 Direct Labor 5 Indirect Materials 6 Fixed Manufacturing overhead $10.00 Material $9.00 Labor $3.00 Material $6.00 Fixed Overhead 7 Variable manufacturing overhead $2.00 Variable Overhead 8 Fixed administrative expense $8.00 Fixed Period 9 Variable sales commission $14.00 Variable ☑ Overhead 10 11 Using the above cost data, answer the following questions: 12 13 At 20,000 units of production, what is the per unit variable cost At 20,000 units of production, what is the per unit fixed cost If the Company's production were to increase to 25,000 14 15 What is the total fixed cost 16 17 18 What is the per unit fixed cost What is the total variable cost What is the per unit variable cost
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Question
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A
B
с
D
E
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following
cost data represents average variable costs per unit for 20,000 units of production.
2
3
Direct Materials
4
Direct Labor
5
Indirect Materials
6
Fixed Manufacturing overhead
$10.00
Material
$9.00
Labor
$3.00
Material
$6.00
Fixed
Overhead
7 Variable manufacturing overhead
$2.00 Variable
Overhead
8
Fixed administrative expense
$8.00
Fixed
Period
9
Variable sales commission
$14.00 Variable
☑
Overhead
10
11
Using the above cost data, answer the following questions:
12
13
At 20,000 units of production, what is the per unit variable cost
At 20,000 units of production, what is the per unit fixed cost
If the Company's production were to increase to 25,000
14
15
What is the total fixed cost
16
17
18
What is the per unit fixed cost
What is the total variable cost
What is the per unit variable cost"
Transcribed Image Text:1
A
B
с
D
E
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following
cost data represents average variable costs per unit for 20,000 units of production.
2
3
Direct Materials
4
Direct Labor
5
Indirect Materials
6
Fixed Manufacturing overhead
$10.00
Material
$9.00
Labor
$3.00
Material
$6.00
Fixed
Overhead
7 Variable manufacturing overhead
$2.00 Variable
Overhead
8
Fixed administrative expense
$8.00
Fixed
Period
9
Variable sales commission
$14.00 Variable
☑
Overhead
10
11
Using the above cost data, answer the following questions:
12
13
At 20,000 units of production, what is the per unit variable cost
At 20,000 units of production, what is the per unit fixed cost
If the Company's production were to increase to 25,000
14
15
What is the total fixed cost
16
17
18
What is the per unit fixed cost
What is the total variable cost
What is the per unit variable cost
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