Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses forthe month:$ 74,000$ 37,500Direct materialsDirect labor$ 17,00029,500Variable manufacturing overheadFixed manufacturing overheadTotal manufacturing overheadVariable selling expenseFixed selling expenseTotal selling expenseVariable administrative expenseFixed administrative expenseTotal administrative expense$ 46,500$ 13,00020,000$ 33,000$4,50026,000$ 30,500 4. With respect to cost classifications for predicting cost behavior:a. What is the total variable manufacturing cost?b. What is the total fixed cost for the company as a whole?c. What is the variable cost per unit produced and sold?5. With respect to cost classifications for decision making:a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred tomake the additional unit?

There are mainly three types of cost; 1) Variable cost, 2) Fixed costs and 3) Mixed cost. Mixed cost…

Company produced and sold 1,000 its during its first month of operation the month: $ 74,000 $ 37,500 Direct materials Direct labor $ 17,000 29,500 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense $ 46,500 $ 13,000 20,000 $ 33,000

Company produced and sold 1,000 its during its first month of operation the month: $ 74,000 $ 37,500 Direct materials Direct labor $ 17,000 29,500 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense $ 46,500 $ 13,000 20,000 $ 33,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Question

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for
the month:
$ 74,000
$ 37,500
Direct materials
Direct labor
$ 17,000
29,500
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Variable selling expense
Fixed selling expense
Total selling expense
Variable administrative expense
Fixed administrative expense
Total administrative expense
$ 46,500
$ 13,000
20,000
$ 33,000
$
4,500
26,000
$ 30,500

4. With respect to cost classifications for predicting cost behavior:
a. What is the total variable manufacturing cost?
b. What is the total fixed cost for the company as a whole?
c. What is the variable cost per unit produced and sold?
5. With respect to cost classifications for decision making:
a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to
make the additional unit?

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