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  • Company XYZ produces two products, X and Y. For Product X, the direct materials cost is $25 per unit, and it requires 4 hours of direct labor at $20 per hour. For Product Y, the direct materials cost is $35 per unit, and it requires 5 hours of direct labor at $25 per hour.
  • The company incurred $12,000 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.