Chapter 1, Problem 1.9E

1.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example, Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The variable cost per unit sold if units produced is 18000.

2.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example, Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The variable cost per unit sold if units produced is 22000.

3.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example, Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

To determine: The total variable costs if 18000 units are sold.

4.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example, Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The total variable costs if 22000 units are sold.

5.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example, Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The average fixed manufacturing overhead cost per unit if 18000 units are produced.

6.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The average fixed manufacturing overhead cost per unit if 22000 units are produced.

7.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The total amount of fixed manufacturing overheads incurred if 18000 units are manufactured.

8.

To determine

Concept Introduction:

Manufacturing overheads: These are expenses or overheads which are indirectly linked with the production process. For example Depreciation of any equipment used in the production process.

Variable costs: It is a cost that differs with respect to the production levels. An increase or decrease in the production level has the same effect on the variable cost also.

The total amount of fixed manufacturing overheads incurred if 22000 units are manufactured.