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mixas84 [53]
3 years ago
9

Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its averag

e costs per unit are as follows: Average Cost per Unit Direct materials $ 6.05 Direct labor $ 3.05 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.00 Variable administrative expense $ 0.50 The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to: $16.20 $10.80 $13.80 $14.30
Business
1 answer:
Dimas [21]3 years ago
6 0

Answer:

$13.80

Explanation:

Variable costs:

Directmaterial cost                            $6.05

Direct labor                                        $3.05

Variable manufacturing overhead   $ 1.70

Variable manufacturing overhead  <u> $ 3.00 </u>

Total variable cost                           <u> $13.80 </u>

All the additional cost incurred to manufacture each extre unit will be incremental manufacturing cost of the 5,001th unit. So, the correct answer $13.80.

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Full Question:

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Question: The situation described in the first excerpt, what is the inspector's opinion of employer Taylor, Ibbotson, and co.? what phrases in the report support this

Answer:

The inspectors opinion of Taylor Ibboston and Co, is that they have engaged in criminal activities which are in violation fo the 1833 Factory Act. He is also is of the opinion that they ought to be punished to the full extend of the Law.

Explanation:

In the excerpt, he clearly states:

<em>I then went into the house to look at the time-book, and in the presence of one of the Masters referred to the cruelty of the case, and stated that I should certainly punish It with all the severity In my power....  </em>

<em />

Another phrase which supports his position states:

<em> I therefore, my lord, varied the Information, so as to enable me to sue for 80/ [about $400 In 2010], being four full penalties, ... </em>

<em />

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