Question

2 Bearcat Company's relevant range of production is 8,500 units to 10,500 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost Per Unit S 6.50 S 4.00 Direct materials Direct labor Variable manufacturing overhead Insurance on factory Fixed selling expense Sales commissions Utilities on headquarter office S 3.50 $ 1.00 S 0.50 A. B. $ $ $ $ $ 166,000 144,000 130,000 120,000 156,000

Answer 1

Cost of production of 10000 units
Direct Materials	$             65,000
($6.5*10000)
Direct Labor	$             40,000
($4*10000)
Variable Manufacturing Overhead	$             15,000
($1.5*10000)
Insurance on factory	$             36,000
($4*9000)
Total Cost	$          1,56,000