Question
Dona Corporation's manufacturing department needs your help in computing and classifying its costs. You have been presented the following data and corresponding values/formulas: Cost/Particular Cost
Dona Corporation's manufacturing department needs your help in computing and classifying its costs. You have been presented the following data and corresponding values/formulas:
Cost/Particular | Cost Formula | |
Indirect Materials | 2,500 plus 0.80 per machine hour | |
Maintenance of Machine and Equipment | 1,200 plus 0.60 per machine hour | |
Utilities | 200 plus 0.30 per machine hour | |
Depreciation of equipment used in manufacturing | 60,000 per annum | |
Direct Materials | 100 per unit | |
Direct Labor | 200 per machine hour | |
Administrative Expense | 80,000 | |
Sales Commissions | 20% of sales | |
Sales | 1,000,000 for 1,000 units |
1. Based on these cost formulas, how much is the manufacturing overhead cost at 100 machine hours for one month?
a. 4,724
b. 64,070
c. 4,070
d. 9,070
2. Based on these cost formulas, how much is the total manufacturing cost at 100 machine hours for one month?
a. 124,070
b. 129,070
c. 184,070
d. 120,000
3. Based on these cost formulas, how much is the total fixed cost for one month?
a. 88,000
b. 8,900
c. 88,900
d. 8,000
4. Based on these cost formulas, how much is the total variable cost at 100 machine hours for one month?
a. 120,170
b. 320,000
c. 320,170
d. 120,000
5. Based on these cost formulas, at what activity level will total manufacturing overhead cost be 9,325 for one month?
a. 250 machine hours
b. 180 machine hours
c. 200 machine hours
d. 300 machine hours
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