Question

incurred the following costs during 2010. these costs were incurred to produce 30,000 units of product. variable manufacturing overhead was 90% of the direct material cost. what is the total product cost for 2021

Answer 1

Answer:

b. $517,344

Explanation:

Note: The full question is attached as picture

Total product cost for 2021

Particulars                                               Amount $

Direct materials cost                                  5.9

(150,000/30,000)*118%

Direct labor                                                 6.0

(180000/30000)

Variable manufacturing overhead             5.31

((150000*90%/30000)*118%)

Fixed manufacturing overhead                  4.3460

((258000-(150000*90%)/3000)*106%)                    

Total product cost per unit                       $21.5560

Number of units produced = 24,000 units

So, the total product cost = Total product cost per unit * Number of units produced = $21.5560 * 24,000 units = $517,344.