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  • Company OPQ produces two products, X and Y. For Product X, the direct materials cost is $40 per unit, and it requires 7 hours of direct labor at $35 per hour. For Product Y, the direct materials cost is $50 per unit, and it requires 8 hours of direct labor at $40 per hour.
  • The company incurred $20,000 in manufacturing overhead costs during the period.

• Requirements:

  • Calculate the total manufacturing cost for each product.
  • Determine the total cost of goods manufactured for both products combined.
  • Analyze the cost differences between the two products.
  • Provide recommendations for cost optimization.