Fixed, Variable, and Mixed Costs Refer to the data given in Exercise 1-7. Answer all questions independently. Required: 1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Question

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Answer 1

Textbook Question

Chapter 1, Problem 9E

Fixed, Variable, and Mixed Costs
Refer to the data given in Exercise 1-7. Answer all questions independently.
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

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Students have asked these similar questions

Mona reported $70,000 in net profit for the year using absorption costing. The company had no units in beginning inventory, planned and actual production was 21,500 units and sales were 19,000 units during the year. Variable manufacturing costs were $20 per unit and total budgeted fixed manufacturing overhead was $100,000. There was no underapplied or overapplied overhead reported during the year. Determine the net profit under variable costing.

I need Solution

On September 1, 2024, Baxter Inc. reported Retained Earnings of $432,000. During the month, Baxter generated revenues of $70,000, incurred expenses of $35,000, purchased equipment for $15,000, and paid dividends of $8,500. What is the balance in Retained Earnings on September 30, 2024?

Answer 2

Textbook Question

Chapter 1, Problem 9E

Fixed, Variable, and Mixed Costs
Refer to the data given in Exercise 1-7. Answer all questions independently.
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

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Answer 3

Textbook Question

Chapter 1, Problem 9E

Fixed, Variable, and Mixed Costs
Refer to the data given in Exercise 1-7. Answer all questions independently.
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

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Answer 4

Textbook Question

Chapter 1, Problem 9E

Fixed, Variable, and Mixed Costs
Refer to the data given in Exercise 1-7. Answer all questions independently.
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

Answer 8

Expert Solution

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Introduction:

Fixed and Variable Cost:

Fixed costs are costs that remains constant and do not fluctuate with the change in activity volumes or production. The increase or decrease in activity volume or production does not impact the cost as the fixed cost is associated with the product. Indirect costs and factory overheads are included in fixed costs.

Variable costs are costs that fluctuates with the activity volume or production. The cost varies with the level of change in activity volume or production. Increase in activity or production leads to increase in total costs and decreased activity or production leads to reduction in total costs. Examples of variable costs include wages paid to labor, sales commission etc. Variable costs are helpful in decision-making process by managers in production process.

Requirement-1:

To calculate: The variable cost per unit produced and sold when 18,000 units are produced and sold.

Answer 13

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 1

Answer 14

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Answer 15

Conclusion

Hence the variable cost per unit when 18,000 units are produced and sold is $14.00.

Answer 16

Requirement-2:

Expert Solution

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Answer 17

Requirement-2:

Expert Solution

Answer 18

Requirement-2:

Expert Solution

Answer 19

Expert Solution

Answer 20

To determine

To calculate: The variable cost per unit produced and sold when 22,000 units are produced and sold.

Answer 21

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 2

Answer 22

Explanation of Solution

Total Variable cost per unit is calculated by using the formula:

Total Variable cost per unit=Total amount/Number of units Produced

Total variable amount is computed as Number of units produced*Cost per unit

Answer 23

Conclusion

Hence the variable cost per unit when 22,000 units are produced and sold is $14.00.

Answer 24

Requirement-3:

Expert Solution

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Answer 25

Requirement-3:

Expert Solution

Answer 26

Requirement-3:

Expert Solution

Answer 27

Expert Solution

Answer 28

To determine

To calculate: The total amount of variable cost when 18,000 units are produced and sold.

Answer 29

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 3

Answer 30

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Answer 31

Conclusion

The total amount of variable cost is $126,000 when 18,000 units are produced and sold.

Answer 32

Requirement-4:

Expert Solution

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Answer 33

Requirement-4:

Expert Solution

Answer 34

Requirement-4:

Expert Solution

Answer 35

Expert Solution

Answer 36

To determine

To calculate: The total amount of variable cost when 22,000 units are produced and sold.

Answer 37

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 4

Answer 38

Explanation of Solution

Variable costs includes the sum of all costs that changes with the level of production such as cost of direct labor, direct material, variable overheads, variable selling and administrative expenses.

Answer 39

Conclusion

The total amount of variable cost is $154,000 when 22,000 units are produced and sold.

Answer 40

Requirement-5:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Answer 41

Requirement-5:

Expert Solution

Answer 42

Requirement-5:

Expert Solution

Answer 43

Expert Solution

Answer 44

To determine

To Calculate: The average fixed manufacturing cost per unit when 18,000 units are produced.

Answer 45

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000Units= $5.56

Answer 46

Explanation of Solution

The formula for calculating average fixed manufacturing cost per unit is:

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit for 18,000 Units= 100,000/18,000

Average Fixed Manufacturing Cost per Unit for 18,000 Units= $5.56

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit.

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Answer 47

Conclusion

Hence the average fixed manufacturing cost per unit when 18,000 units are produced is $5.56

Answer 48

Requirement-6:

Expert Solution

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Answer 49

Requirement-6:

Expert Solution

Answer 50

Requirement-6:

Expert Solution

Answer 51

Expert Solution

Answer 52

To determine

To Calculate: The average fixed manufacturing cost per unit when 22,000 units are produced.

Answer 53

Answer to Problem 9E

Solution: Average Fixed Manufacturing Cost per Unit for 22,000 Units = $4.54

Answer 54

Explanation of Solution

The average fixed manufacturing cost per unit is calculated by using the formula,

Average Fixed Manufacturing Cost per Unit =Total fixed manufacturing costs/Number of units Produced

Average Fixed Manufacturing Cost per Unit= $100,000/22,000

Average Fixed Manufacturing Cost per Unit for 22,000 Units =$4.54

Total Fixed Manufacturing Cost is computed as Budgeted Units * Fixed Manufacturing cost per unit

Total Fixed Manufacturing Cost= 20,000*$5=$100,000

Answer 55

Conclusion

Hence the average fixed manufacturing cost per unit when 22,000 units are produced is $4.54.

Answer 56

Requirement-7:

Expert Solution

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Answer 57

Requirement-7:

Expert Solution

Answer 58

Requirement-7:

Expert Solution

Answer 59

Expert Solution

Answer 60

To determine

To calculate:

The total amount of fixed manufacturing overhead incurred to support when 18,000 units are produced and sold.

Answer 61

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 5

Answer 62

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Answer 63

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 18,000 units of goods produced and sold.

Answer 64

Requirement-8:

Expert Solution

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

Answer 65

Requirement-8:

Expert Solution

Answer 66

Requirement-8:

Expert Solution

Answer 67

Expert Solution

Answer 68

To determine

To Calculate:

The total amount of fixed manufacturing overhead incurred to support when 22,000 units are produced and sold.

Answer 69

Answer to Problem 9E

Solution:

Introduction To Managerial Accounting, Chapter 1, Problem 9E , additional homework tip 6

Answer 70

Explanation of Solution

Fixed overhead cost does not change with the level of activity or production. Hence the budgeted 20,000 units are taken for calculating total amount of fixed manufacturing overhead that is constant for all levels of production.

Answer 71

Conclusion

Hence the total amount of fixed manufacturing overhead will be $100,000 to support 22,000 units of goods produced and sold

Answer 72

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