Question

1.Sparacino Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	6.90
Direct labor	$	3.90
Variable manufacturing overhead	$	1.70
Fixed manufacturing overhead				$	25,200
Sales commissions	$	1.50
Variable administrative expense	$	0.55
Fixed selling and administrative expense				$	8,100

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

2. Glew Corporation has provided the following information:

	Cost per Unit		Cost per Period
Direct materials	$	6.00
Direct labor	$	3.35
Variable manufacturing overhead	$	1.75
Fixed manufacturing overhead			$	8,800
Sales commissions	$	1.00
Variable administrative expense	$	0.40
Fixed selling and administrative expense			$	4,000

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

3.Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	5.50
Direct labor	$	3.90
Variable manufacturing overhead	$	1.30
Fixed manufacturing overhead	$	13.50
Fixed selling expense	$	2.25
Fixed administrative expense	$	1.80
Sales commissions	$	0.50
Variable administrative expense	$	0.45

If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Answer 1

1.

No of units produced = 5,000

Variable manufacturing overhead per unit = 1.70

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (5,000 * 1.70) + 25,200

                                                                                = 8,500 + 25,200

                                                                                = 33,700

2.

Indirect manufacturing are costs nothing but manufacturing overheads

No of units produced = 3,000     

Variable manufacturing overhead per unit = 1.75

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (3,000 * 1.75) + 8,800

                                                                                = 5,250 + 8,800

                                                                                = 14,050

3.

No of units produced = 10,000  

Variable manufacturing overhead per unit = 1.30

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (10,000 * 1.30) + (9,000 * 13.50)

                                                                                = 13,000 + 121,500

                                                                                = 134,500