Landmann Corporation\'s relevant range of r activity is 7000 units to 11000 unts

Question

Landmann Corporation's relevant range of r activity is 7000 units to 11000 unts. When e produces and sells 9.000 units, its average costs per unt are as tolows Cost per Unit Direct materials 6.35 s 4.18 Variable sanufacturing overhead 1.35 $13.5e s2.25 Direct labor Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions 1.00 Variable administrative expense .45 For financial reporting purposes, the total amount of product costs incurred to make 9000 nts is Multiple Choice 236,200 8

Explanation / Answer

Solution:

Average cost per unit = direct material + direct labour + variable manufacturing overhead + fixed manufacturing overhead

= $6.35 + $4.10 + $1.35 + $13.50

= $25.30

Total product cost for 9000 units = $25.30 x 9,000

= $227,700

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.