Question

TB Problem Qu. 1-275 Saxbury Corporation's relevant range of activity ... Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $5.50 $ 3.65 $ 1.80 $ 3.60 $0.80 $0.65 $ 0.55 $ 0.55 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,600 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,600 units? c. If 6,600 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) d. If 6,600 units are sold, what is the total amount of variable costs related to the units sold? e. If 6,600 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.) f. If 6,600 units are produced, what is the total amount of fixed manufacturing cost incurred? 9. If 6,600 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.) h. If the selling price is $23.00 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) 1. If 4,600 units are produced, what is the total amount of direct manufacturing cost incurred? J. If 4,600 units are produced, what is the total amount of indirect manufacturing cost incurred? k. What incremental manufacturing cost will the company incur if it increases production from 5,600 to 5,601 units? (Round "Per unit" answer to 2 decimal places.) a. Total product cost b. Total period cost C.Variable cost per unit sold d. Total variable costs e. Average fixed manufacturing cost per unit 1. Total fixed manufacturing overhead cost $ $ $ $ $ 81,480 14.280 15.05 99,330 3.05 20,160 $

Answer 1

a, b, e and f are correct. So, I have done the remaining parts

c) Variable cost per unit sold= Direct materials+Direct labor+Variable manufacturing overhead+Sales commissions+Variable administrative expense

= $5.50+3.65+1.80+0.55+0.55

= $12.05

d) Total variable costs= Number of units sold*Variable cost per unit

= 6600*$12.05

= $79530

g) Total manufacturing overhead= Variable manufacturing overhead+Fixed manufacturing overhead

= ($1.80*6600)+($3.60*5600)

= $32040

Manufacturing overhead per unit= Total manufacturing overhead/Number of units

= $32040/6600

= $4.85 per unit

h) Contribution margin per unit= Selling price-Variable costs

= $23.00-12.05

= $10.95 per unit

i) Direct manufacturing overhead cost= Direct materials+Direct labor

= ($5.50*4600)+($3.65*4600)

= $42090

j) Indirect manufacturing overhead cost= Variable manufacturing overhead+Fixed manufacturing overhead

= ($1.80*4600)+($3.60*5600)

= $28440

k) Incremental manufacturing cost= Direct materials+Direct labor+Variable manufacturing overhead

= $5.50+3.65+1.80

= $10.95

NOTE:- For any problem regarding the answer please ask in the comment section.