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 25,000 units of production.   Average Cost per Unit Direct Materials $10.00 Direct Labor $9.00 Variable Manufacturing Overhead $5.00 Variable Sales Commission $14.00 Fixed Selling & Administrative Expenses $8.00 Fixed Manufacturing Overhead $6.00 PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56).  PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345).  Using the costs data from Baxter Company, answer the following questions: If 29,000 units are produced, what are the total variable costs?  If 17,000 units are produced, what are the total manufacturing overhead costs incurred?  If 23,000 units are produced, what are the total manufacturing overhead costs incurred?  If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred?  If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. 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 25,000 units of production.

  Average Cost per Unit

Direct Materials

$10.00

Direct Labor

$9.00

Variable Manufacturing Overhead

$5.00

Variable Sales Commission

$14.00

Fixed Selling & Administrative Expenses

$8.00

Fixed Manufacturing Overhead

$6.00

PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). 

PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345). 

Using the costs data from Baxter Company, answer the following questions:

  1. If 29,000 units are produced, what are the total variable costs? 
  2. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? 
  3. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? 
  4. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? 
  5. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred? 
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