Chapter 1
Student name:__________
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 36,450
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold? Note: Round "Per
unit" answer to 2 decimal places.
d. If 10,000 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases
production from 9,000 to 9,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 1Want to earn $1,500
,2) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 4,100 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.70
Direct labor $3.40
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.80
Fixed selling expense $0.70
Fixed administrative expense $0.55
Sales commissions $0.45
Variable administrative expense $0.45
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 4,100 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 4,100 units?
c. If 5,100 units are sold, what is the variable cost per unit sold? Note: Round "Per unit"
answer to 2 decimal places.
d. If 5,100 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 5,100 units are produced, what is the average fixed manufacturing cost per unit
produced? Note: Round "Per unit" answer to 2 decimal places.
f. If 5,100 units are produced, what is the total amount of fixed manufacturing cost
incurred?
g. If 5,100 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? Note: Round "Per
unit" answer to 2 decimal places.
h. If the selling price is $24.20 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
i. If 3,100 units are produced, what is the total amount of direct manufacturing cost
incurred?
j. If 3,100 units are produced, what is the total amount of indirect manufacturing cost
incurred?
k. What incremental manufacturing cost will the company incur if it increases
production from 4,100 to 4,101 units? Note: Round "Per unit" answer to 2 decimal
places.
. 3Want to earn $1,500
,3) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.30
Direct labor $3.65
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.90
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $0.50
Variable administrative expense $0.50
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 5,000 units?
c. If 6,000 units are sold, what is the variable cost per unit sold? Note: Round "Per unit"
answer to 2 decimal places.
d. If 6,000 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 6,000 units are produced, what is the average fixed manufacturing cost per unit
produced? Note: Round "Per unit" answer to 2 decimal places.
f. If 6,000 units are produced, what is the total amount of fixed manufacturing cost
incurred?
g. If 6,000 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? Note: Round "Per
unit" answer to 2 decimal places.
h. If the selling price is $22.90 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
i. If 4,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
j. If 4,000 units are produced, what is the total amount of indirect manufacturing cost
incurred?
k. What incremental manufacturing cost will the company incur if it increases
production from 5,000 to 5,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 5Want to earn $1,500
, 4) Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units. When it
produces and sells 6,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.40
Direct labor $3.80
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $1.50
Variable administrative expense $0.45
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 6,000 units?
c. If the selling price is $20.20 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing cost
incurred?
f. What incremental manufacturing cost will the company incur if it increases
production from 6,000 to 6,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 6Want to earn $1,500
Student name:__________
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 36,450
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold? Note: Round "Per
unit" answer to 2 decimal places.
d. If 10,000 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases
production from 9,000 to 9,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 1Want to earn $1,500
,2) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 4,100 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.70
Direct labor $3.40
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.80
Fixed selling expense $0.70
Fixed administrative expense $0.55
Sales commissions $0.45
Variable administrative expense $0.45
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 4,100 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 4,100 units?
c. If 5,100 units are sold, what is the variable cost per unit sold? Note: Round "Per unit"
answer to 2 decimal places.
d. If 5,100 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 5,100 units are produced, what is the average fixed manufacturing cost per unit
produced? Note: Round "Per unit" answer to 2 decimal places.
f. If 5,100 units are produced, what is the total amount of fixed manufacturing cost
incurred?
g. If 5,100 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? Note: Round "Per
unit" answer to 2 decimal places.
h. If the selling price is $24.20 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
i. If 3,100 units are produced, what is the total amount of direct manufacturing cost
incurred?
j. If 3,100 units are produced, what is the total amount of indirect manufacturing cost
incurred?
k. What incremental manufacturing cost will the company incur if it increases
production from 4,100 to 4,101 units? Note: Round "Per unit" answer to 2 decimal
places.
. 3Want to earn $1,500
,3) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.30
Direct labor $3.65
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.90
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $0.50
Variable administrative expense $0.50
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 5,000 units?
c. If 6,000 units are sold, what is the variable cost per unit sold? Note: Round "Per unit"
answer to 2 decimal places.
d. If 6,000 units are sold, what is the total amount of variable costs related to the units
sold?
e. If 6,000 units are produced, what is the average fixed manufacturing cost per unit
produced? Note: Round "Per unit" answer to 2 decimal places.
f. If 6,000 units are produced, what is the total amount of fixed manufacturing cost
incurred?
g. If 6,000 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? Note: Round "Per
unit" answer to 2 decimal places.
h. If the selling price is $22.90 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
i. If 4,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
j. If 4,000 units are produced, what is the total amount of indirect manufacturing cost
incurred?
k. What incremental manufacturing cost will the company incur if it increases
production from 5,000 to 5,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 5Want to earn $1,500
, 4) Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units. When it
produces and sells 6,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.40
Direct labor $3.80
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $1.50
Variable administrative expense $0.45
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to
make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to
sell 6,000 units?
c. If the selling price is $20.20 per unit, what is the contribution margin per unit sold?
Note: Round "Per unit" answer to 2 decimal places.
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost
incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing cost
incurred?
f. What incremental manufacturing cost will the company incur if it increases
production from 6,000 to 6,001 units? Note: Round "Per unit" answer to 2 decimal
places.
. 6Want to earn $1,500
