dake corporation's relevant range of activity is 3,100 units to 6,500 units. when it produces and sells 4,800 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 3.10 variable manufacturing overhead $ 1.75 fixed manufacturing overhead $ 3.00 fixed selling expense $ 1.05 fixed administrative expense $ 0.75 sales commissions $ 0.85 variable administrative expense $ 0.75 for financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:

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21-10-2022
Business

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dake corporation's relevant range of activity is 3,100 units to 6,500 units. when it produces and sells 4,800 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 3.10 variable manufacturing overhead $ 1.75 fixed manufacturing overhead $ 3.00 fixed selling expense $ 1.05 fixed administrative expense $ 0.75 sales commissions $ 0.85 variable administrative expense $ 0.75 for financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:

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KanakKhatana KanakKhatana · Answer 1 · 2022-10-28T02:07:19+02:00

The total production cost incurred if 6,800 units are produced is $ 33603.1

The manufacturing overhead is an indirect cost. It is allocated based on a predetermined rate. We will take into account only the direct materials and direct labor.

For 4,800 units:

Total direct manufacturing cost= 4,800 × ( $ 7.00+ $ 3.10)

Total direct manufacturing cost= $ 33603.1

What is total manufacturing cost?

Total manufacturing cost, or simply the cost of producing the things that will be sold to customers, is the sum of all the money that a firm spends on its manufacturing operations. As implied by the name, it considers every single expenditure.

To know more about total manufacturing cost, refer:

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