Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Average Cost per Unit Direct Materials $10.00 Direct Labor $9.00 Variable Manufacturing Overhead $5.00 Variable Sales Commission $14.00 Fixed Selling & Administrative Expenses $8.00 Fixed Manufacturing Overhead $6.00 PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the costs data from Baxter Company, answer the following questions: If 29,000 units are produced, what are the total variable costs? If 17,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Average Cost per Unit Direct Materials $10.00 Direct Labor $9.00 Variable Manufacturing Overhead $5.00 Variable Sales Commission $14.00 Fixed Selling & Administrative Expenses $8.00 Fixed Manufacturing Overhead $6.00 PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the costs data from Baxter Company, answer the following questions: If 29,000 units are produced, what are the total variable costs? If 17,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...
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Question
2. Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following
| Average Cost per Unit | |
|
Direct Materials |
$10.00 |
|
Direct Labor |
$9.00 |
|
Variable Manufacturing |
$5.00 |
|
Variable Sales Commission |
$14.00 |
|
Fixed Selling & Administrative Expenses |
$8.00 |
|
Fixed Manufacturing Overhead |
$6.00 |
PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56).
PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345).
Using the costs data from Baxter Company, answer the following questions:
- If 29,000 units are produced, what are the total variable costs?
- If 17,000 units are produced, what are the total
manufacturing overhead costs incurred? - If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
- If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred?
- If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
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