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 5,000 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 $5.30 $3.65 $1.50 $3.99 $0.75 $0.60 $0.50 $0.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5.000 units? c. IF 6.000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) d. If 6.000 units are sold, what is the total amount of variable costs related to the units sold? er 6,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit answer to 2 decimal places.) Cr 6.000 units are produced, what is the total amount of fixed manufacturing cost incurred? Ir 6,000 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 $22.90 per unit, what is the contribution margin per unit sold? (Round "Per unit answer to 2 decimal places 1. If 4.000 units are produced, what is the total amount of direct manufacturing cost incurred? 4,000 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 5.000 to 5.001 units? (Round "Per unit answer to 2 decimal places.)

Answer 1

a)
Direct materials ($5.30 * 5,000 units)	$26,500
Direct labor ($3.65 * 5,000 units)	$18,250
Variable manufacturing overheads ($1.50 * 5,000 units)	$7,500
Fixed manufacturing overheads ($3.90 * 5,000 units)	$19,500
Total Product Costs for 5,000 units	$71,750
b)
Fixed selling expenses ($0.75 * 5,000 units)	$3,750
Fixed administrative expenses ($0.60 * 5,000 units)	$3,000
Sales commissions ($0.50 * 5,000 units)	$2,500
Variable administrative expenses ($0.50 * 5,000 units)	$2,500
Total Period Costs for 5,000 units	$11,750
c)
Direct materials	$5.30
Direct labor	$3.65
Variable manufacturing overhead	$1.50
Sales commissions	$0.50
Variable administratie expense	$0.50
Variable cost per unit sold when unit sales are 6,000 units	$11.45
d)
Variable cost per unit sold when unit sales are 6,000 units (a)	$11.45
Total number of units sold (b)	6,000
Total amount of variable cost related to 6,000 units sold (a*b)	$68,700
e)
Average fixed manufacturing cost per unit (5,000 units * $3.90 = $19,500/6,000 units)	$3.25
f)
Total amount of fixed manufacturing cost incurred (5,000 units * $3.90 per unit)	$19,500
g)
Variable manufacturing overhead (6,000 units * $1.50 per unit)	$9,000
Fixed manufacturing overheads (5,000 units * $3.90 per unit)	$19,500
Total manufacturing overheads (a)	$28,500
Total number of units sold (b)	6,000
Total manufacturing overhead cost per unit (a/b)	$4.75
h)
Selling price per unit	$22.90
Less: Variable costs per unit:
Direct materials	($5.30)
Direct labor	($3.65)
Variable manufacturing overhead	($1.50)
Sales commissions	($0.50)
Variable administrative expense	($0.50)
Contribution Margin per unit	$11.45

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Please do not give the negative rating for not answering all the sub parts as i have just followed HOMEWORKLIB RULES and also i have answered more than the standard instruction.