Use the information below to answer the following two questions: Ginger Company's relevant range of production is 5,000 units to 13,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost $4.80 $3.50 $1.30 $3.00 $2.50 $1.00 $0.50 ? Q. If 12,500 units are produced, what is the manufacturing overhead cost per unit incurred to support this level of production? A. (Click to select) ✓per unit Q. If 12,500 units are produced and sold, the company will incur $60,000 in total period costs. How much is the variable administrative expense per unit? A. (Click to select) ✓per unit

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Use the information below to answer the following two questions:
Ginger Company's relevant range of production is 5,000 units to 13,000 units. When it produces and sells 10,000 units, its average
costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Q. If 12,500 units are produced, what is the manufacturing overhead cost per unit incurred to support this level of production?
A. (Click to select)
Q. If 12,500 units are produced and sold, the company will incur $60,000 in total period costs. How much is the variable administrative
expense per unit?
A. (Click to select)
per unit
Average Cost
$4.80
$ 3.50
$1.30
$3.00
$2.50
$1.00
$0.50
?
✓per unit
Transcribed Image Text:Use the information below to answer the following two questions: Ginger Company's relevant range of production is 5,000 units to 13,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Q. If 12,500 units are produced, what is the manufacturing overhead cost per unit incurred to support this level of production? A. (Click to select) Q. If 12,500 units are produced and sold, the company will incur $60,000 in total period costs. How much is the variable administrative expense per unit? A. (Click to select) per unit Average Cost $4.80 $ 3.50 $1.30 $3.00 $2.50 $1.00 $0.50 ? ✓per unit
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