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	16000	12800
Total costs:
Direct labor		180480
Direct materials		97280
Variable overhead costs		74240
Factory rent	140000
Sales commissions		33280
Administrative salaries	102000
Per unit costs for select rows:
Direct labor	14.10
Direct materials	7.60
Factory rent
Administrative salaries

Answer 1

Solution

	January	February
Units produced and sold	16000	12800
Total costs:
Direct labor	$2,25,600.00	$ 1,80,480.00
Direct materials	$1,21,600.00	$    97,280.00
Variable overhead costs	$   92,800.00	$    74,240.00
Factory rent	$1,40,000.00	$ 1,40,000.00
Sales commissions	$   41,600.00	$    33,280.00
Administrative salaries	$1,02,000.00	$ 1,02,000.00
Per unit costs for select rows:
Direct labor	$         14.10	$          14.10
Direct materials	$           7.60	$            7.60
Factory rent	$           8.75	$          10.94
Administrative salaries	$           6.38	$            7.97

Working

	January	February
Units produced and sold	16000	12800
Total costs:
Direct labor	=180480/12800*16000	180480
Direct materials	=97280/12800*16000	97280
Variable overhead costs	=74240/12800*16000	74240
Factory rent	140000	140000
Sales commissions	=33280/12800*16000	33280
Administrative salaries	102000	102000
Per unit costs for select rows:
Direct labor	14.1	=180480/12800
Direct materials	7.6	=97280/12800
Factory rent	=140000/16000	=140000/12800
Administrative salaries	=102000/16000	=102000/12800

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.