Direct materials per unit = $39
Direct manufacturing labor per unit= $6
Variable manufacturing overhead per unit = $10
Fixed manufacturing overhead per unit = $14
Total fixed manufacturing overhead for 2000 tires = 14 x 2,000
= $28,000
Calculation of Total Cost of production 3,000 tires | |
Direct materials (3,000 x 39) | 117,000 |
Direct manufacturing labor (3,000 x 6) | 18,000 |
Variable manufacturing overhead (3,000 x 10) | 30,000 |
Fixed manufacturing overhead | 28,000 |
Total cost | $193,000 |
The cost of production 3,000 tires is $193,000.
First option is correct.
Kindly comment if you need further assistance. Thanks‼!
Grip Manufacturing currently produces 2000 tires per month. The following per unit data for 2000 tires...
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