Question

Walsh Corporation's relevant range of activity is 2.000 to 6.000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Direct materials $6.41 Direct labor $3.02 Variable manufacturing overhead $1.16 Fived manufacturing overhead $2.54 Fored selling expense $0.54 Fixed administrative expense $0.26 Sales commissions $2.08 1f 4,000 are produced, the total amount of direct manufacturing costs incurred is closest to: Select one Oa. $37,720 Ob. 542,360 Oc. $50,040 Od. 547,880 Walsh Corporation manufactures and sells hand painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Walsh for last year Cost of clay used in production $78,000 Wages paid to the workers who paint the figurines $51.000 Wages paid to the sales manager's secretary $23.000 Cost of junk mail advertising $55.000 What is the total of the direct costs above? Select one O a. $129,000.00 Ob. $152,000.00 Oc $207,000.00 Od $74,000.00

Answer 1

Direct material (4000 x $6.41) = $25640 pirect Labour Cuooo x $3.02) $ 12080 I Total bisect manfacturing cost $37720 Hence option is correct cost of clay used in production $78000 (Direct materie) wages paid to the workers who $ 51000 pain the figurines Correct wages) Total Direct costs $199000 Hence option ® is correct

Amount (6) 77ooo Particulars Damwaga Sudan Administrative wages and salaries factory supplies sales staff salaries factory Repreciation THANI 35ooo U3000 bile yooo Building Rent Indirect Labour mas keting Эчооо. I Total period costs 93). $ 493,000 Cen?! Xooon_code Hence option is correct 3 pret stran vridlotan thank you so garsit -