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manufacturing costs for August when production was 1,000 units appear below: Direct material $12 per unit Direct labor $7,500 Variable overhead 6,000 Factory depreciation 9,000 Factory supervisory salaries 7,800 Other fixed factory costs 2,500 Compute the flexible budget manufacturing cost amount for a month when 900 units are produced.

Sagot :

Answer:

Total manufacturing Cost $42,250

Explanation:

The computation of the flexible budget manufacturing cost amount for a month when 900 units are produced is given below:

No. of units Produced 900 units

Direct material at $12 per unit $10,800

Direct labor (($7,500 ÷1,000) × 900) $6,750

Variable Overhead ($6,000 ÷ 1000) × 900    $5,400

Factory depreciation $9,000

Factory Supervisory salary  $7,800

other fixed factory cost $2,500

Total manufacturing Cost $42,250

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