Variable costs direct materials $4.00 per unit direct labor $1.20 per unit manufacturing overhead 0.95 per unit Fixed monthly costs depreciation $6000 supervisory salaries 13500 other fixed costs 3850 estimate manufacturing costs for production levels of 25000 units, 30000 units 35000 unts per month
Answer:
We have been provided with the information ,that
| Particular | Amount in $ |
| Direct Materil | 4 |
| Direct labour | 1.2 |
| manufacturing overhead | 0.95 |
| Total Variable Cost | 6.15 |
| Fixed Cost | |
| costs depreciation | 6000 |
| supervisory salaries | 13500 |
| other fixed costs | 3850 |
| Total Fixed Cost | 23350 |
Now we have to find manufacturing costs for different production levels and it will be calculated as follow
| 25000 Units |
30000 Units |
35000 Units |
|
| Direct Materil | 100000 | 120000 | 140000 |
| Direct labour | 30000 | 36000 | 42000 |
| manufacturing overhead | 23750 | 28500 | 33250 |
| Total Variable Cost | 153750 | 184500 | 215250 |
| Fixed Cost | |||
| costs depreciation | 6000 | 6000 | 6000 |
| supervisory salaries | 13500 | 13500 | 13500 |
| other fixed costs | 3850 | 3850 | 3850 |
| Total Fixed Cost | 23350 | 23350 | 23350 |
| Total Manufacturing Cost | 177100 | 207850 | 238600 |
