TB Problem Qu. 1-288 Balerio Corporation's relevant ...
Balerio Corporation's relevant range of activity is 8,000 unitsto 11,000 units. When it produces and sells 10,000 units, itsaverage costs per unit are as follows:
Average Costper Unit Direct materials $ 6.40 Direct labor $ 3.20 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 14.40 Fixed selling expense $ 2.80 Fixed administrative expense $ 2.00 Sales commissions $ 0.80 Variable administrative expense $ 0.70
Required:
a. For financial reporting purposes, what is the total amount ofproduct costs incurred to make 10,000 units? (Do not roundintermediate calculations.)
b. If 9,000 units are sold, what is the variable cost per unitsold? (Round "Per unit" answer to 2 decimalplaces.)
c. If 9,000 units are sold, what is the total amount of variablecosts related to the units sold? (Do not round intermediatecalculations.)
d. If the selling price is $19.20 per unit, what is thecontribution margin per unit sold? (Round "Per unit" answerto 2 decimal places.)
e. What incremental manufacturing cost will the company incur ifit increases production from 10,000 to 10,001 units? (Round"Per unit" answer to 2 decimal places.)
TB Problem Qu. 1-288 Balerio Corporation's relevant ...
Balerio Corporation's relevant range of activity is 8,000 unitsto 11,000 units. When it produces and sells 10,000 units, itsaverage costs per unit are as follows:
| Average Costper Unit | ||
| Direct materials | $ | 6.40 |
| Direct labor | $ | 3.20 |
| Variable manufacturing overhead | $ | 1.50 |
| Fixed manufacturing overhead | $ | 14.40 |
| Fixed selling expense | $ | 2.80 |
| Fixed administrative expense | $ | 2.00 |
| Sales commissions | $ | 0.80 |
| Variable administrative expense | $ | 0.70 |
Required:
a. For financial reporting purposes, what is the total amount ofproduct costs incurred to make 10,000 units? (Do not roundintermediate calculations.)
b. If 9,000 units are sold, what is the variable cost per unitsold? (Round "Per unit" answer to 2 decimalplaces.)
c. If 9,000 units are sold, what is the total amount of variablecosts related to the units sold? (Do not round intermediatecalculations.)
d. If the selling price is $19.20 per unit, what is thecontribution margin per unit sold? (Round "Per unit" answerto 2 decimal places.)
e. What incremental manufacturing cost will the company incur ifit increases production from 10,000 to 10,001 units? (Round"Per unit" answer to 2 decimal places.)
Related questions
Martinez Companyâs relevant range of production is 7,500 unitsto 12,500 units. When it produces and sells 10,000 units, itsaverage costs per unit are as follows:
| Average Cost Per Unit | |||
| Directmaterials | $ | 6.40 | |
| Direct labor | $ | 3.90 | |
| Variable manufacturingoverhead | $ | 1.40 | |
| Fixed manufacturingoverhead | $ | 4.00 | |
| Fixed selling expense | $ | 3.40 | |
| Fixed administrativeexpense | $ | 2.10 | |
| Sales commissions | $ | 1.10 | |
| Variable administrativeexpense | $ | 0.55 | |
For financial accounting purposes, what is the total amount ofproduct costs incurred to make 10,000 units?
Martinez Companyâs relevant range of production is 7,500 unitsto 12,500 units. When it produces and sells 10,000 units, itsaverage costs per unit are as follows:
| Average Cost Per Unit | |||
| Directmaterials | $ | 5.20 | |
| Direct labor | $ | 2.70 | |
| Variable manufacturingoverhead | $ | 1.50 | |
| Fixed manufacturingoverhead | $ | 4.00 | |
| Fixed selling expense | $ | 2.20 | |
| Fixed administrativeexpense | $ | 2.00 | |
| Sales commissions | $ | 1.00 | |
| Variable administrativeexpense | $ | 0.50 | |
| 1. For financial accounting purposes, what is the total amount ofproduct costs incurred to make 10,000 units? (Do not roundintermediate calculations.) | |||
Martinez Companyâs relevant range of production is 7,500 unitsto 12,500 units. When it produces and sells 10,000 units, itsaverage costs per unit are as follows:
| Average Cost Per Unit | |||
| Directmaterials | $ | 6.20 | |
| Direct labor | $ | 3.70 | |
| Variable manufacturingoverhead | $ | 1.60 | |
| Fixed manufacturingoverhead | $ | 4.00 | |
| Fixed selling expense | $ | 3.20 | |
| Fixed administrativeexpense | $ | 2.20 | |
| Sales commissions | $ | 1.20 | |
| Variable administrativeexpense | $ | 0.45 | |
13. If the selling price is $22.20 per unit, what is thecontribution margin per unit? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)
