Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories an its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials Direct labor $8.00 $5.00 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $1.00 $6.00 $3.50 $2.50 $4.00 Sales commissions Variable administrative expense $1.00 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amour of period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? your answers to 2 decimal places.) 3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.)
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories an its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials Direct labor $8.00 $5.00 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $1.00 $6.00 $3.50 $2.50 $4.00 Sales commissions Variable administrative expense $1.00 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amour of period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? your answers to 2 decimal places.) 3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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