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Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and ...

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Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and ...

Arman 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	$6.10
Direct labor	$2.90
Variable manufacturing overhead	$1.25
Fixed manufacturing overhead	$3.00
Fixed selling expense	$1.05
Fixed administrative expense	$0.60
Sales commissions	$1.50
Variable administrative expense	$0.55

Required:

a. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?

b. 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?

c. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?

d. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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