a. Product cost
Product costs | ||
Per unit | 12000 units | |
Direct Materials | $ 6.60 | $ 79,200.00 |
Direct Labor | $ 3.40 | $ 40,800.00 |
Variable Manufacturing Overhead | $ 1.70 | $ 20,400.00 |
Fixed Manufacturing Overhead | $ 13.60 | $ 163,200.00 |
$ 25.30 | $ 303,600.00 |
b. Variable Cost per unit
Variable costs | |
Per unit | |
Direct Materials | $ 6.60 |
Direct Labor | $ 3.40 |
Variable Manufacturing Overhead | $ 1.70 |
Sales Commission | $ 0.60 |
Variable Administrative expenses | $ 0.50 |
Total Variable cost per unit | $ 12.80 |
c. Variable costs for 11000 units = 11000 x $12.80 = $140800
d. Contribution Margin per unit = Selling Price - Variable cost
per unit
= $19.40 - $12.80 = $6.60 per unit
e. Incremental Manufacturing costs
Variable costs | |
Per unit | |
Direct Materials | $ 6.60 |
Direct Labor | $ 3.40 |
Variable Manufacturing Overhead | $ 1.70 |
Total Incremental Manufacturing cost per unit | $ 11.70 |
Balerio Corporation's relevant range of activity is 10,000 units to 13,000 units. When it produces and...
Balerio Corporation's relevant range of activity is 10,000 units to 14,000 units. When it produces and sells 12,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.80 $ 3.40 $ 1.70 $13.60 $ 2.40 $ 2.00 $ 0.50 $ 0.40 Required: a. For financial reporting purposes, what is the total amount of product...
Balerio Corporation's relevant range of activity is 10,000 units to 14,000 units. When it produces and sells 12.000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.80 $ 3.40 $ 1.70 $13.60 $ 2.40 $ 2.00 $ 0.50 $ 0.40 Required: a. For financial reporting purposes, what the total amount of product costs...
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Balerio Corporation's relevant range of activity is 6,000 units to 10,000 units. When it produces and sells 8,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.00 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 13.20 Fixed selling expense $ 2.20 Fixed administrative expense $ 1.60 Sales commissions $ 0.60 Variable administrative expense $ 0.50 Required: a. For financial reporting purposes, what is the total amount of...