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t View History Bookmarks Window Help 45%.. T newconnect.mheducation.com how to find variable cost per unit- Google Search uiz (t0 points) Click to close this tab; Option-cick to close al tabs except this one Help Save& Exit Su Dake Corporation\'s relevant range of activity is 3,100 units to 6.500 units. When it produces and sells 4,800 units, its average costs per unit are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.00 $3.10 $1.75 $3.00 $1.05 $0.75 0.85 $0-75 Ir 3.800 units are produced, the total amount of direct manufacturing cost incurred is closest to: Multiple Choice

Solution

Question – 1, Dake Corporation

Direct Manufacturing Costs = [ Direct Material Cost per unit + Direct Labor cost per unit ] x Number of units produced

= [$7.00 per unit + $3.10 per unit ] x 3,800 Units

= $10.10 per unit x 3,800 Units

= $38,380

Direct Manufacturing Costs = $38,380

Question – 2, Kolger Corporation

Contribution per unit = Selling Price per unit – [ Variable costs + Sales Commission ]

= $26.00 – [ $4.95 + 4.90 + 1.75 + 0.80 + 0.75 ]

= $26.00 – 13.15

= $12.85

If the selling price is $26.00 per unit, the contribution margin per unit sold is closest to “ $12.85”

Question – 3, Macy Corporation

Contribution per unit = Selling Price per unit – [ Variable costs + Sales Commission ]

= $33.50 – [ $5.65 + 4.10 + 2.10 + 1.35 + 0.60 ]

= $33.50 – 13.80

= $19.70

If the selling price is $33.50 per unit, the contribution margin per unit sold is closest to “$19.70”