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Need help with both parts, I'm not sure how to compute for total amount of indirect manufacturing cost??? 1) Lambeth Corporation has provided the following
Need help with both parts, I'm not sure how to compute for total amount of indirect manufacturing cost???
1)
Lambeth Corporation has provided the following information:
Cost per Unit | Cost per Period | |||
Direct materials | $ | 4.90 | ||
Direct labor | $ | 2.95 | ||
Variable manufacturing overhead | $ | 1.25 | ||
Fixed manufacturing overhead | $ | 8,000 | ||
Sales commissions | $ | 1.00 | ||
Variable administrative expense | $ | 0.40 | ||
Fixed selling and administrative expense | $ | 4,000 | ||
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Multiple Choice
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$3,750
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$9,750
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$11,750
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$8,000
2)
Glew Corporation has provided the following information:
Cost per Unit | Cost per Period | |||
Direct materials | $ | 6.00 | ||
Direct labor | $ | 3.35 | ||
Variable manufacturing overhead | $ | 1.75 | ||
Fixed manufacturing overhead | $ | 8,800 | ||
Sales commissions | $ | 1.00 | ||
Variable administrative expense | $ | 0.40 | ||
Fixed selling and administrative expense | $ | 4,000 | ||
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
-
$14,050
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$5,250
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$11,850
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$8,800
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