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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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