In: Accounting
Soft Corp, which produces a single product – a memory foam pillow, has provided you with the following average cost and production data for the months of January and February: Jan Feb Production volume ............................................. 2,000 units 4,000 units Direct materials ................................................. $15.40 per unit $15.40 per unit Direct labor ........................................................ $16.50 per unit $16.50 per unit Manufacturing overhead .................................... $71.40 per unit $42.20 per unit 3A. What is total monthly fixed manufacturing cost?
Hence, total monthly fixed manufacturing costs is $116,800.
Both direct materials and direct labor cost are variable cost. Only manufacturing overhead cost is a mixed costs. Thus, $116,800 of fixed manufacturing overhead costs is taken as total fixed manufacturing cost of the month .