Baker Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. |
Production volume | 11,800 | units | 13,000 | units |
Direct materials | $761,100 | $838,500 | ||
Direct labor | $241,900 | $266,500 | ||
Manufacturing overhead | $1,010,800 | $1,035,280 |
The best estimate of the total cost to manufacture 12,200 units is closest to: (Do not round intermediate calculations.) |
$2,032,650
$2,055,960
$1,962,720
$2,102,580
Baker Corporation’s has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. |
Production volume | 5,900 | units | 6,900 | units |
Direct materials | $97.70 | per unit | $97.70 | per unit |
Direct labor | $26.60 | per unit | $26.60 | per unit |
Manufacturing overhead | $79.60 | per unit | $73.60 | per unit |
The best estimate of the total variable manufacturing cost per unit is:
$124.30
$182.90
$171.30
$162.50
Expert Answer
Statementshowing Computations | |||||
Paticulars | 11,800 units cost | Per Unit cost | 13,000 units cost | Per Unit cost | |
Direct Materials | 761,100.00 | 64.50 | 838,500.00 | 64.50 | |
Direct Labour | 241,900.00 | 20.50 | 266,500.00 | 20.50 | |
Manufacturing overhead | 1,010,800.00 | 85.66 | 1,035,280.00 | 79.64 | |
2,013,800.00 | 170.66 | 2,140,280.00 | |||
Difference In Manufacturing overhead = 1035280 – 1010800 | 24,480.00 | ||||
No of units = 13000 – 11800 | 1,200.00 | ||||
Per Unit cost | 20.40 | ||||
Fixed Cost = 1010800 – 11800*20.40 | 770,080.00 | ||||
Direct materials = 12200*64.50 | 786,900.00 | ||||
Direct Labour= 12200 * 20.50 | 250,100.00 | ||||
Variable overhead = 12200*20.40 | 248,880.00 | ||||
Fixed Overhead | 770,080.00 | ||||
Total cost | 2,055,960.00 |