Question

Value minus ColaValue−Cola

spends

$ 3$3

on direct​ materials, direct​ labor, and variable manufacturing overhead for every unit​ (12-pack of​ soda) it produces. Fixed manufacturing overhead costs

$ 3$3

million per year. The​ plant, which is currently operating at only

6565​%

of​ capacity, produced

1515

million units this year. Management plans to operate closer to full capacity next​ year, producing

2525

million units. Management​ doesn't anticipate any changes in the prices it pays for​materials, labor, and manufacturing overhead.Read therequirements

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.

Requirement 1. What is the current total product cost​ (for the

1515

million​ units), including fixed and variable​ costs?Determine the​ formula, then calculate the current total product cost​ (for the

1515

million​ units), including fixed and variable costs.

Answer 1

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Please find below the answer
Statementshowing Computations
Paticulars	Amount
direct​ materials, direct​ labor, and variable manufacturing overhead per unit	3.00
No of units produced	15,000,000.00
Total Variable cost	45,000,000.00
Total Fixed Cost	3,000,000.00
Total Product Cost = Fixed Cost + Variable Cost	48,000,000.00
In other Words= Total Product Cost = 3m + 3*No of Units
i.e. Total product cost = 3000,000 + 3*15,000,000	48,000,000.00