Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct Materials $5.30 Direct Labor $3.65 Variable Manufacturing Overhead $1.50 Fixed Manufacturing Overhead $3.90 Fixed Selling Expense $0.75 Sales Commissions $0.50 Variable Administrative Expense $0.50 Fixed Administrative Expense $0.60 For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct Materials $5.30 Direct Labor $3.65 Variable Manufacturing Overhead $1.50 Fixed Manufacturing Overhead $3.90 Fixed Selling Expense $0.75 Sales Commissions $0.50 Variable Administrative Expense $0.50 Fixed Administrative Expense $0.60 For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...
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Question
![Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units.
When it produces and sells 5,000 units, its average costs per unit are as
follows:
Average Cost per Unit
Direct Materials
$5.30
Direct Labor
$3.65
Variable Manufacturing Overhead $1.50
Fixed Manufacturing Overhead
$3.90
Fixed Selling Expense
$0.75
Sales Commissions
$0.50
Variable Administrative Expense
$0.50
Fixed Administrative Expense
$0.60
For financial reporting purposes, what is the total amount of product costs
incurred to make 5,000 units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c40e613-382b-496a-8a81-de47f5816b6e%2F90d862fc-9707-4087-88b9-1b484733c1d5%2Fjjcr15f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units.
When it produces and sells 5,000 units, its average costs per unit are as
follows:
Average Cost per Unit
Direct Materials
$5.30
Direct Labor
$3.65
Variable Manufacturing Overhead $1.50
Fixed Manufacturing Overhead
$3.90
Fixed Selling Expense
$0.75
Sales Commissions
$0.50
Variable Administrative Expense
$0.50
Fixed Administrative Expense
$0.60
For financial reporting purposes, what is the total amount of product costs
incurred to make 5,000 units?
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