Ques 1

the question asks manufacturing costs

direct costs
direct materials 5.7
direct labor 3.2
variable manufacturing overheads 1.6
total 10.5
Total no. of units 12000
total direct costs 126000

indirect costs
fixed costs 40000
(since these will be same in the range of 7500
-12500 units)
(4*10000)

so you have
total direct mfr cost 126000
total indirect mfr cost 40000
range 7500 12500 a
production 10000 Direct materials 6.00
Direct materials 6.00 Direct Labor 3.50
Direct Labor 3.50 Manufacturing OH 1.50
Manufacturing OH 1.50 Fixed Mfr OH 4.00
Fixed Mfr OH 4.00 15.00
Fixed selling expense 3.00 Units poduced 10,000
Fixed administrative expense 2.00 Total product costs 150,000
sales commissions 1.00
variable administrative expense 0.50 b
Fixed selling expense 3.00
a 10,000.00 Fixed administrative ex 2.00
b 10,000.00 sales commissions 1.00
c 8,000.00 variable administrative 0.50
d 8,000.00 6.50
e 8,000.00 Units poduced 10,000
f Total period costs 65,000
g
h c
i Direct materials 6.00
j Direct Labor 3.50
k Manufacturing OH 1.50
sales commissions 1.00
variable administrative 0.50
Total variable costs 12.50

d
Variable cost per unit 12.50
Units sold 8,000
Total variable costs 100,000

e
Fixed manufacturing cos 40000
10000*4
Units produced 8,000
average fmoh per unit 5.00
units

units