Glisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and sells 6,300 units, its average costs per unit are as follows: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,300 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,300 units? c. If 5,300 units are sold, what is the total amount of variable costs related to the units sold? d. If the selling price is $24.35 per unit, what is the contribution margin per unit sold? Note: Round "Per unit" answer to 2 decimal places. a. Total product cost b. Total period cost c. Total variable costs d. Contribution margin per unit e. Incremental manufacturing cost Average Cost per Unit $ 7.20 $ 4.50 $ 3.10 e. What incremental manufacturing cost will the company incur if it increases production from 6,300 to 6,301 units? Note: Round "Per unit" answer to 2 decimal places. $ $6.00 $.75 $.60 $ 1.50 $ 0.55 15 X X

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Glisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and sells 6,300 units, its average costs
per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,300 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,300 units?
c. If 5,300 units are sold, what is the total amount of variable costs related to the units sold?
d. If the selling price is $24.35 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
e. What incremental manufacturing cost will the company incur if it increases production from 6,300 to 6,301 units?
Note: Round "Per unit" answer to 2 decimal places.
a. Total product cost
b. Total period cost
c. Total variable costs
d. Contribution margin per unit
e. Incremental manufacturing cost
$
15 X
X
X
X
Average Cost per
Unit
$ 7.20
$ 4.50
$ 3.10
$ 6.00
$.75
$.60
$ 1.50
$ 0.55
×
Transcribed Image Text:Glisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and sells 6,300 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,300 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,300 units? c. If 5,300 units are sold, what is the total amount of variable costs related to the units sold? d. If the selling price is $24.35 per unit, what is the contribution margin per unit sold? Note: Round "Per unit" answer to 2 decimal places. e. What incremental manufacturing cost will the company incur if it increases production from 6,300 to 6,301 units? Note: Round "Per unit" answer to 2 decimal places. a. Total product cost b. Total period cost c. Total variable costs d. Contribution margin per unit e. Incremental manufacturing cost $ 15 X X X X Average Cost per Unit $ 7.20 $ 4.50 $ 3.10 $ 6.00 $.75 $.60 $ 1.50 $ 0.55 ×
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