FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, ito unit costs are as follows
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling ex se
Fixed administrative expense
Sales commissions
Variable administrative expense
Amount per
Unit
$ 8.75
$6.25
$ 1.50
$5.00
$ 3.50
$2.00
$1.00
$ 0.50
What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units?
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Transcribed Image Text:A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, ito unit costs are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling ex se Fixed administrative expense Sales commissions Variable administrative expense Amount per Unit $ 8.75 $6.25 $ 1.50 $5.00 $ 3.50 $2.00 $1.00 $ 0.50 What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units?
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