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Learned Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fix
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Answer #1
a.Total product (manufacturing )cost $129,600
b.Total period (non manufacturing) cost $20,000
c.contribution margin per unit $10.40
d.Total direct manufacturing cost $93,600
e.total indirect manufacturing cost $48,200

working:

a.total product costs = (direct materials + direct labor +variable manufacturing overhead)* number of units + fixed manufacturing overhead

=> (6.20+4.20+1.80) *8000 units + 32,000

=>$97,600.+32,000

=>$129,600

b.period costs to sell = (sale commissions + variable administrative expense)* number of units + fixed selling and administrative expense

=> [(0.60+0.50) *8000]+11,200

=>$20,000.

c.contribution margin per unit = sale price per unit - variable costs

=>23.70-6.20-4.20-1.80-0.60-0.50

=>$10.40.

d.total direct manufacturing cost :

(direct material +direct labor) *number of units

=>(6.20+4.20)*9000

=>$93,600.

e.total indirect manufacturing cost:

(variable overhead * number of units) + fixed manufacturing overhead

=> (1.80*9000) + 32,000

=>16,200+32,000

=>$48,200.

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