Favorites Toak Hel al Exam Help Save &Exi; Sub ion Exercise 2 Different Costs fo
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Favorites Toak Hel al Exam Help Save &Exi; Sub ion Exercise 2 Different Costs for Different Purposes, Cost-Volume-Profit-Relationships [LO 1-1. LO 1-2, LO 1-3, LO 1-4, LO 1-5, LO 1-6, LO 5-1, LO 5-3, LO 5-5, LO 5-7, LO 5-8] Hxson Compaty manufactures and sells one product for $34 per unt The company mainteins no beginning or ending invernonies and its relevant range of production rs 20.000 urits to 30,000 unns When Hoson produces and sels 25,000 units, ts unit costs are as folows Ancount Pez Unit 8.00 $5.00 irect materiala Direct Labor Variable Fixed nanutac Fixed selling expense Fixed adninistrative expenso manutacturing overhead 1.00 turing overhead Varlable adninistrative expens Required: ehat is the total amount of product costs incurred to make 25,000 units?What is the total amount of period costs incurred to sell 25,000 unns Next here to searchExplanation / Answer
1)Product cost per unit : Direct material +direct labor +variable overhead+ Fixed Manufacturing Overhead
= $8+$5+$1+$6= $2
Total Product Cost: 25000*$20= $500,000
Period Cost : [25000(3.5+4)]selling expense+[25000(2.5+1) ]administrative expense
= $187500+87500= $275000
2) Variable manufacturing cost :8+5+1= $ 14 per unit
Fixed manufacturing cost: 6*25000 = 150000
Average fixed manufacturing cost per unit : 150000/24000 = $ 6.25 per unit
3) Variable manufacturing cost :8+5+1= $ 14 per unit
Average fixed manufacturing cost per unit :150000/26000 = $ 5.77per unit
4)Direct Manufacturing cost : direct material +direct labor
=[27000*8]+[27000*5]
= 216000+ 135000
= 351000
Indirect manufacturing cost =Variable manufacturing overhead +fixed manufacturing overhead
= [27000*1]+150000
= 27000+150000
= 177000
Note : As per Chegg only 4 Part can be solved.
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