Division Information for 2014

Beginning inventory

0

Expected sales in units

55,000

Selling price per unit

$34

Variable manufacturing costs per unit

$14

Fixed manufacturing overhead costs (total)

$440,000

Fixed manufacturing overhead costs per unit:

Based on 55,000 units

$8 per unit ($440,000/55,000)

Based on 88,000 units

$5 per unit ($440,000/88,000)

Manufacturing cost per unit:

Based on 55,000 units

$22 per unit ($14 variable + $8 fixed)

Based on 88,000 units

$19 per unit ($14 variable + $5 fixed)

Variable and administrative expenses

$2

Fixed selling and administrative expenses (total)

$42,900