Required 14a f 10600 units are produced what are the total a

Required: 14-a. f 10,600 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? Total direct manufacturing cost 14-b. If 10,600 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production? Total indirect manufacturing costI

Solution

14-a. Direct Manufacturing Cost = No. of units x (Direct Material cost + Direct Labor)

= 10,600 x ($5.90 + $3.40) = $98,580

14-b. Total Indirect Manufacturing Cost = No. of units x (Variable Manufacturing overhead + Fixed Manufacturing overhead)

= 10,600 x ( $1.60 + $3.90) = $58,300

15. Incremental Cost

Total cost for 12,600 units = 12,600 x ($5.90 + $3.40 + $1.60 + $3.90+ $2.90+ $2.20+ $1.20+ $0.45) =$271,530

Total cost for 12,601 units = 12,601 x ($5.90 + $3.40 + $1.60 + $3.90+ $2.90+ $2.20+ $1.20+ $0.45) =$271,551.55

Incremental cost = $271,551.55 - $271,530 =$21.55

12-a. Total amount of manufacturing overhead

The total variable manufacturing overhead = $1.60 x 15,100 = $24,160

Given that 12,600 units were budgeted, thus the total fixed manufacturing overhead = 12,600 x $3.90 = $49,140

total amount of manufacturing overhead cost = $24,160 + $49,140 = $73,300

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