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Business, 07.09.2021 05:00 NetherisIsTheQueen

Mauricio AmaroLLCrelevant range of activity is 4,000 units to 10,000 units. The Direct Labor Cost is 60% of prime costs. When it produces and sells 7,000 units, its average costs per unit are as follows: Average Cost per Unit Prime Costs 24.00 Variable manufacturing overhead 3.75 Fixed manufacturing overhead 4.50 Fixed Period Costs 2.50 Sales commissions 1.50 Variable administrative expense 2.00 Determined the Total Product Cost when 9,000 units are produced and soldSolution: Data:What is the Conversion costfor 8,000 units?Determined total Direct Product Costfor 7,500 units;Determined Total Indirect Product Costsor 8,500 units.

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