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Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made

Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made in Department M. Mogouls accountant has identified the following annual costs associated with these two products.

Financial Data:
Salary of vice president of production division $200,000
Salary of supervisor Department M 80,000
Salary of supervisor Department N 60,000
Direct materials cost Department M 300,000
Direct materials cost Department N 420,000
Direct labor cost Department M 240,000
Direct labor cost Department N 680,000
Direct utilities cost Department M 120,000
Direct utilities cost Department N 24,000
Factory utilities 36,000
Production supplies 36,000
Fringe benefits 138,000
Depreciation 720,000
Nonfinancial data
Machine hours Department M 5,000
Machine hours Department N 3,000
Units produced of Product M 2,000
Units produced of Product N 4,000

What is the total indirect cost?

Do not enter dollar signs or commas in your answers.

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Question 2 1 pts Which one of the following cost drivers is likely to have the weakest cause and effect relationship with factory utilities cost? number of departments direct labor hours machine hours number of units produced Question 3 1 pts Determine the estimated indirect unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs. Round your answer to the nearest whole dollar. Do not enter dollar signs or commas in your answers. Question 4 1 pts What is the direct cost per unit of products made in Department M? Question 5 1 pts What is the estimated total unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs? Question 6 1 pts If Mogoul prices its products at cost plus 40 percent of cost, what price per unit must it charge for Product M? $781 $558 $223 O $370 Question 2 1 pts Which one of the following cost drivers is likely to have the weakest cause and effect relationship with factory utilities cost? number of departments direct labor hours machine hours number of units produced Question 3 1 pts Determine the estimated indirect unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs. Round your answer to the nearest whole dollar. Do not enter dollar signs or commas in your answers. Question 4 1 pts What is the direct cost per unit of products made in Department M? Question 5 1 pts What is the estimated total unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs? Question 6 1 pts If Mogoul prices its products at cost plus 40 percent of cost, what price per unit must it charge for Product M? $781 $558 $223 O $370

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