• 
  

  Company DEF is analyzing its production costs for the month of August. The following information is available:

  • Total units produced: 40,000
  • Total direct materials cost: $100,000
  • Total direct labor cost: $80,000
  • Total manufacturing overhead cost: $60,000
  • Fixed selling and administrative expenses: $35,000

• Requirements:

  • Calculate the total manufacturing cost per unit.
  • Determine the total cost of goods manufactured.
  • Compute the total cost per unit including fixed selling and administrative expenses.
  • Analyze the cost structure and suggest cost reduction measures.