Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Deit 6.60 $3.20 $1.50 813.40 2.30 $1.80 $0.80 $0.70 Direct naterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead rixed selling expense rixed administrative expense Sales commissions Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do nat round intermediate calculations.)

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces and sells 10,000 units, its
average costs per unit are as follows:
Average Cost
per Unit
$ 6.60
$3.20
$1.50
$ 13.40
$ 2.30
$ 1.80
$0.80
$0.70
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
rixed selling expense
rixed administrative expense
Sales comminsions
Variable adminietrative expense
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round
intermediate calculations.)
Transcribed Image Text:Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit $ 6.60 $3.20 $1.50 $ 13.40 $ 2.30 $ 1.80 $0.80 $0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead rixed selling expense rixed administrative expense Sales comminsions Variable adminietrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
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