Question

pls show work!

5. Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced. Direct materials $200 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $360 The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000. Required: a. What is the total cost of producing 2,000 glasses? b. What is the total cost of producing 1,600 glasses? c. What is the per unit cost when producing 1,500 glasses?

Answer 1

Answer :-

a)Total cost of producing 2000 glasses are as follows -

No. of unit Produced = 2000 glasses

Total cost = Total fixed cost + Total variable cost

Total fixed cost = Fixed Manufacturing overhead × No. of unit

Total Fixed cost = $ 50 × 1000 = $ 50,000

The plant has capacity for producing 3000 glasses .So upto 3000 unit of production fixed cost would be $ 50,000.

Total variable cost = ( Direct Material cost + Direct Manufacturing labour cost + Variable Manufacturing overhead ) × No. of unit Produced

Total variable cost = ( $200 + $40 + $70 ) × 2000

Total variable cost = $ 620,000

Total cost = $50,000 + $620,000

Total cost = $670,000

Total cost of 2000 glasses is $670,000

In Fixed Manufacturing overhead ,Plant supervisor salary is already included so it will added anywhere.

b) Total cost of producing 1600 glasses are as follows -

No. of unit Produced = 1600 glasses

Total cost = Total fixed cost + Total variable cost

Total fixed cost = Fixed Manufacturing overhead × No. of unit

Total Fixed cost = $ 50 × 1000 = $ 50,000

The plant has capacity for producing 3000 glasses .So upto 3000 unit of production fixed cost would be $ 50,000.

Total variable cost = ( Direct Material cost + Direct Manufacturing labour cost + Variable Manufacturing overhead ) × No. of unit Produced

Total variable cost = ( $200 + $40 + $70 ) × 1600

Total variable cost = $ 496,000

Total cost = $50,000 + $496,000

Total cost = $546,000

In Fixed Manufacturing overhead ,Plant supervisor salary is already included so it will added anywhere.

c) Cost Per unit of producing 1500 glasses are as follows-

No. of unit Produced = 1500 glasses

To find out cost per unit we first find out Total cost of 1500 glasses.

Total cost = Total fixed cost + Total variable cost

Total fixed cost = Fixed Manufacturing overhead × No. of unit

Total Fixed cost = $ 50 × 1000 = $ 50,000

The plant has capacity for producing 3000 glasses .So upto 3000 unit of production fixed cost would be $ 50,000.

Total variable cost = ( Direct Material cost + Direct Manufacturing labour cost + Variable Manufacturing overhead ) × No. of unit Produced

Total variable cost = ( $200 + $40 + $70 ) × 1500

Total variable cost = $ 465,000

Total cost = $50,000 + $ 465,000

Total cost = $ 515,000

Total cost of 1500 glasses is

Cost Per unit = Total cost / No. Of unit Produced

Cost per unit = $ 515,000 / 1500 glasses

Cost per unit = 343.333 per unit