Question

Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.40 Direct labor $ 3.80 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 38,250 Sales commissions $ 0.80 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 12,750 

Required:

 a. For financial reporting purposes, what is the total amount of product costs incurred to make 8,500 units?

 b. For financial reporting purposes, what is the total amount of period costs incurred to sell 8,500 units?

 c. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

 d. If 9,500 units are produced, what is the total amount of direct manufacturing cost incurred?

 e. If 9,500 units are produced, what is the total amount of indirect manufacturing costs incurred?

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

Answer 1

a
Direct materials	45900	=8500*5.4
Direct labor	32300	=8500*3.8
Variable manufacturing overhead	11900	=8500*1.4
Fixed manufacturing overhead	38250
Total product (manufacturing) cost	128350
b
Sales commissions	6800	=8500*0.8
Variable administrative expense	5950	=8500*0.7
Fixed selling and administrative expense	12750
Total period (nonmanufacturing) cost	25500
c
Selling price	22.90
Less: Variable costs per unit
Direct materials	5.40
Direct labor	3.80
Variable manufacturing overhead	1.40
Sales commissions	0.80
Variable administrative expense	0.70
Total Variable costs per unit	12.10
Contribution margin per unit	10.80
d
Direct materials	51300	=9500*5.4
Direct labor	36100	=9500*3.8
Total direct manufacturing cost	87400
e
Variable manufacturing overhead	13300	=9500*1.4
Fixed manufacturing overhead	38250
Total indirect manufacturing cost	51550