a. Total product cost b. Total period cost c. Variable cost per unit sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 produced
f. Total fixed manufacturing overhead cost
g. Total manufacturing overhead cost
g. Manufacturing overhead per unit
h. Contribution margin per unit
i. Total direct manufacturing cost
j. Total indirect manufacturing cost
k. Incremental manufacturing cost

Transcribed Image Text:Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,700 units, its average costs
per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed
elling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average Cost per
Unit
$ 5.60
$ 3.70
$ 1.90
$ 3.80
$ 0.85
$ 0.70
$ 0.60
$ 0.60
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,700 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,700 units?
c. If 6,700 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
d. If 6,700 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,700 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2
decimal places.)
f. If 6,700 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,700 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 $23.10 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)
i. If 4,700 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,700 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 5,700 to 5,701 units? (Round "Per unit"
answer to 2 decimal places.)
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