Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 3.75 Fixed administrative expense $ 2.25 Sales commissions $ 4.50 Variable administrative expense $ 1.50
Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 3.75 Fixed administrative expense $ 2.25 Sales commissions $ 4.50 Variable administrative expense $ 1.50
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 39E: (Appendix 11A) Manufacturing Cycle Efficiency Kurena Company provided the following information on...
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Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows:
Amount per Unit
Direct materials $ 10.00
Direct labor $ 6.00
Variable manufacturing
Fixed manufacturing overhead $ 7.00
Fixed selling expense $ 3.75
Fixed administrative expense $ 2.25
Sales commissions $ 4.50
Variable administrative expense $ 1.50
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