Check my work, please ! Thunderduck Shoes relevant range of production is 7,500

Question

Check my work, please !

Thunderduck Shoes relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follow: Amount Per Unit Direct materials Direct labor Variable manufacturing overhead Sales commissions Variable administrative 6.00 3.50 1.50 1.00 0.50 Total Amount 40,000 30,000 20,000 Fixed manufacturing overhead Fixed selling expense Fixed administrative expense 1. What is the total amount of product cost to make 8,000 units? Per unit? $6.00+$3.50+$1.50+$ 1.00+$0.50 = $12.50 Per Unit $12.50 *8000-$100,000 2. What is the total amount of period cost to make 8,000 units? Sales Commissions + Fixed Selling Expense+ Fixed Administrative Expense +Variable Administrative-Period costs * 8000 $8000+$30000 +$20000+$4000 $62000 If 12,500 units are sold, what is the variable cost per unit sold? Doesn't matter the cost per item hasn't changed $12.50 per item 3. If 12,500 units are produced, what is the total amount of fixed manufacturing overhead cost incurred to support this level of production? 4. Fixed manufacturing overhead cost is $40000 Doesn't matter the units

Explanation / Answer

1) Total amount of product cost to make 8000:

2) Total amount of period cost to make 8000 unit

3) Variable cost per unit sold = 6+3.50+1.50+1+0.50 = 12.50 per unit

4) Total amount of fixed manufacturing overhead on 12500 unit produced = $40000

Product cost Direct material (8000*6) 48000 Direct labour (8000*3.5) 28000 Variable manufacturing overhead (8000*1.5) 12000 Fixed manufacturing overhead 40000 Total amount of product cost 128000 Per unit (128000/8000) 16 per unit

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