Truer Company manufactures tables.The company expects to manufacture and sell 40,000 tables in 2005.The regular selling price of the product is $30.Projected costs for 40,000 tables are as follows:

Direct materials

$100,000

Direct labour

40,000

Variable manufacturing overhead

60,000

Fixed manufacturing overhead

75,000*

Fixed selling and administrative costs

45,000

Variable selling and administrative costs

80,000

*Total fixed manufacturing overhead increases to $100,000 for production levels over 60,000 units.

REQUIRED:

1.Determine total variable manufacturing costs to produce 50,000 units.

2.Determine total manufacturing costs to produce 50,000 units.