Question
The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: Direct materials 2 lbs. @$40 = $80 Direct
The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:
| Direct materials | 2 lbs. @$40 = $80 |
| Direct labor | 1 hr @ $48 = $48 |
| Variable overhead | 75% of direct labor costs |
| Fixed overhead | 50% of direct labor costs |
What is the total cost reported in the manufacturing cost budget?
| $80,000 |
| $94,000 |
| $128,000 |
| $188,000 |
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
3rd edition
9781337909402, 978-1337788281
