Question

Bemmitt’s direct material cost is $3 per unit. The direct labor rate is $16 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $2 per unit and total budgeted fixed overhead is $7,400. A sales commission of $5 is paid on each unit. If Bemmitt expects to produce 3,210 units and sell 1,330 units, what is the total budgeted cost of goods sold ? Round your answer to the nearest dollar.

Answer 1

Answer

>Correct Answer = $ 15,036

>Working

A	Direct Materail cost per unit	$                        3.00
B = $ 16 x 1/4	Direct Labor Cost per unit	$                        4.00
C	Variable overhead cost per unit	$                        2.00
D = $ 7400 / 3210 units	Fixed overhead cost per unit	$                        2.31
E = A+B+C+D	Budgeted Cost of Goods Sold per unit	$                      11.31
F	Units to be sold	1,330
G = E x F	Total Budgeted Cost of Goods Sold	$              15,036.04