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a. Total product cost b. Total period cost c. Variable cost per unit sold

a. Total product cost b. Total period cost c. Variable cost per unit sold

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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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: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
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.)
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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