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St. Lawrence Manufacturing produced and sold 2,000 units of its product last month, which is also the first month of its operations. The following costs
St. Lawrence Manufacturing produced and sold 2,000 units of its product last month, which is also the first month of its operations. | ||||
The following costs and expenses were reported for last month: | ||||
Amount in $ | ||||
Direct materials | 103,500 | |||
Direct labour | 52,500 | |||
Variable manufacturing overhead (indirect materials) | 22,500 | |||
Fixed manufacturing overhead (depreciation, equipment) | 42,000 | |||
Variable selling expenses (sales commissions) | 18,000 | |||
Fixed selling expenses (salespersons salaries) | 27,000 | |||
Variable administrative expenses (wages of part-time staff) | 6,000 | |||
Fixed administrative expenses (salaries of administrative staff) | 37,500 | |||
Required: | ||||
Given the financial information above: | ||||
1. What was the total fixed cost for the company as a whole last month? | ||||
2.What was the variable product manufacturing cost per unit produced and sold last month? | ||||
4. What was the total period expense last month? | ||||
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