Question

Learned Corporation has provided the following information: Cost per Period Cost per Unit $ 5.30 $ 3.75 $ 1.35 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 36,000 $ 0.70 $ 0.60 $ 12,000 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 8,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 8,000 units? c. If the selling price is $22.80 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 9,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 9,000 units are produced, what is the total amount of indirect manufacturing costs incurred? a. Total product (manufacturing) cost b Total period (nonmanufacturing) cost c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost

Answer 1

					8000
a)				cost pu	total cost
	Direct materials			5.3	42400
	Direct labor			3.75	30000
	Variable manufacturing overhead			1.35	10800
	Fixed manufacturing overhead				36,000
	total product(manufacturing) cost				119200	answer
b)					8000
				cost pu	total cost
	Sales commission			0.7	5600
	Variable administrative expense			0.6	4800
	fixed selling & adm expense				12,000
	total period (non manufacturing)				22400	answer
c)	Selling price per unit				22.8
	Direct materials			5.3
	Direct labor			3.75
	Variable manufacturing overhead			1.35
	Sales commission			0.7
	Variable administrative expense			0.6
	total variable cost				11.7
	contribution margin per unit				11.1	answer
d)					9000
				cost pu	total cost
	Direct materials			5.3	47700
	Direct labor			3.75	33750
	total direct manufacturing cost				81450	answer
e)					9000
				cost pu	total cost
	Variable manufacturing overhead			0.6	5400
	Fixed manufacturing overhead				36,000
	total indirect manufacturing cost				41400	answer