Homework Sourse1Sparacino Corporation has provided the following informatio
1.Sparacino Corporation has provided the following information:
If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
2. Glew Corporation has provided the following information:
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
3.Fasheh Corporation\'s relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
| Cost per Unit | Cost per Period | |||||
| Direct materials | $ | 6.90 | ||||
| Direct labor | $ | 3.90 | ||||
| Variable manufacturing overhead | $ | 1.70 | ||||
| Fixed manufacturing overhead | $ | 25,200 | ||||
| Sales commissions | $ | 1.50 | ||||
| Variable administrative expense | $ | 0.55 | ||||
| Fixed selling and administrative expense | $ | 8,100 | ||||
Solution
1.
No of units produced = 5,000
Variable manufacturing overhead per unit = 1.70
Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead
= (5,000 * 1.70) + 25,200
= 8,500 + 25,200
= 33,700
2.
Indirect manufacturing are costs nothing but manufacturing overheads
No of units produced = 3,000
Variable manufacturing overhead per unit = 1.75
Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead
= (3,000 * 1.75) + 8,800
= 5,250 + 8,800
= 14,050
3.
No of units produced = 10,000
Variable manufacturing overhead per unit = 1.30
Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead
= (10,000 * 1.30) + (9,000 * 13.50)
= 13,000 + 121,500
= 134,500
