Kiwi Company's relevant range of production is 18,000 to 22,000 units. When it produces and...
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Accounting
Kiwi Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs are as follows:
|
| Average Cost |
| Direct materials | $7.00 per unit |
| Direct labour | $4.00 per unit |
| Variable manufacturing overhead | $1.50 per unit |
| Fixed manufacturing overhead | $100,000 |
| Fixed selling expense | $70,000 |
| Fixed administrative expense | $50,000 |
| Sales commissions | $1.00 per unit |
| Variable administrative expense | $0.50 per unit |
(a) What is the total direct manufacturing cost of making 20,000 units?
(b) What is the total indirect manufacturing cost of making 20,000 units?
(c) What is the total amount of period costs for selling 20,000 units?
(d) If 18,000 units are produced and sold, what is the variable cost per unit?
(e) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead?
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