Question

Learned Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Cost per Unit riod $ 5.10 $ 3.65 $ 1.25 $ 31,500 $0.50 $ 0.40 $ 10,500 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 7,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 7,000 units? c. If the selling price is $22.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred? $ 101,500 a. Total product (manufacturing) cost b. Total period (nonmanufacturing) cost C. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost

Could you please tell me step by step what to do?

Answer 1

a.
Direct Materials	$           5.10
Direct labor	$           3.65
Variable manufacturing overhead	$           1.25
Variable manufacturing cost per unit	$        10.00
Total variable manufacturing cost	70000
10*7000
Fixed manufacturing overhead	31,500
Total product cost	101,500
b.
Sales commissions	$           0.50
Variable administrative expense	$           0.40
Variable selling and administrative expense per unit	$           0.90
Variable selling and administrative expense	6300
0.9*7000
Fixed selling and administrative expense	10,500
Total period cost	16,800
c.
Selling price per unit		$22.60
Direct materials	$           5.10
Direct labor	$           3.65
Variable manufacturing overhead	$           1.25
Sales commissions	$           0.50
Variable administrative expense	$           0.40
Variable cost per unit sold		$10.90
Contribution margin per unit		$11.70
d.
Direct materials	$           5.10
Direct labor	$           3.65
Direct manufacturing cost per unit (a)	$           8.75
Number of units produced (b)	8,000
Total direct manufacturing cost (a) × (b)	$70,000.00
e.
Total variable manufacturing overhead cost	10,000
1.25*8000
Total fixed manufacturing overhead cost	31,500
Total indirect manufacturing cost	41,500