Question

Complete the following table:

Round all per unit amounts to the nearest penny (2 places to the right of the decimal point.)
Round total cost amounts to the nearest dollar.

	January	February
Units produced and sold	14000	12600
Total costs:
Direct labor		108360
Direct materials		107100
Variable overhead costs		69300
Factory rent	160000
Sales commissions		25200
Administrative salaries	114000
Per unit costs for select rows:
Direct labor	8.60
Direct materials	8.50
Factory rent
Administrative salaries

Answer 1

	January	February
Units produced and sold	14,000	12,600
Total costs:
Direct labor	$1,20,400.00	$ 1,08,360.00
Direct materials	$1,19,000.00	$ 1,07,100.00
Variable overhead costs	$   77,000.00	$     69,300.00
Factory rent	$1,60,000.00	$ 1,60,000.00
Sales commissions	$   28,000.00	$     25,200.00
Administrative salaries	$1,14,000.00	$ 1,14,000.00
Per unit costs for select rows:
Direct labor	$           8.60	$             8.60
Direct materials	$           8.50	$             8.50
Factory rent	$         11.43	$           12.70
Administrative salaries	$           8.14	$                  9.05

Working

	January	February
Units produced and sold	14000	12600
Total costs:
Direct labor	=8.6*14000	108360
Direct materials	=8.5*14000	107100
Variable overhead costs	=69300/12600*14000	69300
Factory rent	160000	160000
Sales commissions	=2*14000	25200
Administrative salaries	114000	114000
Per unit costs for select rows:
Direct labor	8.6	=108360/12600
Direct materials	8.5	=107100/12600
Factory rent	=160000/14000	=160000/12600
Administrative salaries	=114000/14000	=114000/12600

Fixed cost such as Administrative salaries and factory rent remain same at all levels. Variable cost on the other hand will increase with increase in units as variable cost per units remains same but change in totality.