Respuesta :
Answer:
a)Variable cost= $14u
b)Variable cost=$14u
c) Total variable cost= $252000
d) Total variable cost= $308000
e) Fixed cost per unit= $12,22
f) Fixed cost per unit= $10
g) Total fixed manufacturing overhead= $100000
h) Total fixed manufacturing overhead= $100000
Explanation:
The relevant range refers to a specific activity level that is bounded by a minimum and maximum amount. Within the designated boundaries, certain expense levels can be expected to maintain. Outside of that relevant range, expenses will likely differ from the expected amount.
The range of production is between 18000 and 22000 units. In this range, variable and fixed costs will likely maintain.
We know that at 20000 units the variable and fixed costs are:
Variable:
Direct materials $ 7.00 unit
Direct labor $ 4.00 unit
Variable manufacturing overhead $ 1.50 unit
Sales commissions $ 1.00 unit
Variable administrative expense $ 0.50 unit
Total variable cost= $14u
Fixed costs:
Fixed manufacturing overhead $ 5.00*20000u=$10000
Fixed selling expense $ 3.50*20000u=$70000
Fixed administrative expense $ 2.50*20000u=$50000
Total fixed cost= $220000
a)Q=18000 (it is in the range)
Variable cost= $14u
b)Q=22000 (it is in the range)
Variable cost=$14u
c) Q=18000
Total variable cost= QxCv=18000*14=$252000
d)Q=22000
Total variable cost= QxCv=22000*14=$308000
e) Q=18000
Fixed cost per unit=total fixed cost/Q= 220000/18000=$12,22
f)Q=22000
Fixed cost per unit=total fixed cost/Q= 220000/22000=$10
g) Q=18000
Total fixed manufacturing overhead= $100000 (it doesn't change with production between range)
h) Q=22000
Total fixed manufacturing overhead= $100000 (it doesn't change with production between range)
1. Variable cost per unit produced and sold is $14.00.
2. Variable cost per unit produced and sold is $14.00.
3. Total amount of variable cost related to the units produced and sold is $252,000.
4. Total amount of variable cost related to the units produced and sold is $308,000.
5. Average fixed manufacturing cost per unit produced is $5.56.
6. Average fixed manufacturing cost per unit produced is $4.55.
7. Fixed manufacturing overhead incurred is $100,080.
8. Fixed manufacturing overhead incurred is $100,100.
1. Variable cost per unit
Direct Material $7.00
Direct Labor $4.00
Variable Manufacturing Overhead $1.50
Sales Commission $1.00
Variable Administrative Expenses $0.50
Variable Cost per unit $14.00
2. Variable cost per unit
Variable Cost per unit will be $14.00 if 22,000 units are produced and sold.
3. Total amount of variable cost
Units produced and Sold 18,000
Variable Cost per unit $14.00
Total Variable Cost $252,000
(18,000×$14)
4. Total amount of variable cost
Units produced and Sold 22,000
Variable Cost per unit $14.00
Total Variable Cost $308,000
(22,000×$14)
5. Average fixed manufacturing cost per unit
Fixed manufacturing cost $100,000
(20,000 × $5.00)
Units produced 18,000
Average Fixed manufacturing cost per unit produced $5.56
($100,000/18,000)
6. Average fixed manufacturing cost per unit
Fixed manufacturing cost $100,000
(20,000 × $5.00)
Units produced 22,000
Average Fixed manufacturing cost per unit produced $4.55
($100,000/22,000)
7. Fixed manufacturing overhead
Total amount of Fixed manufacturing overhead $100,080
(18,000×$5.56)
8 Fixed manufacturing overhead
Total amount of Fixed manufacturing overhead $100,100
(22,000×$4.55)
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