5) The manufacturing costs for the Smart Company in August when production was 1,000 units appears below:

Direct material $12 per unit

Direct labour $6,500

Variable overhead 5,000

Factory depreciation 9,000

Factory supervisory salaries 7,800

Other fixed factory costs 2,500

How much is the flexible budget manufacturing cost amount for a month when 800 units are produced? What type of variance would there be for direct materials if the actual cost when 800 units are produced were $10,500.

6) The Smart Company sells its product for $25 per unit. During 2022, it produced 20,000 units and sold 15,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3. Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.

Calculate the per-unit manufacturing cost under variable costing.