Favorites Toak Hel al Exam Help Save Exi Sub ion Exercise 2

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 search

Solution

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.