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If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)

Respuesta :

abiolataiwo2015

Answer:

Direct manufacturing costs incurred = $104,500

Indirect manufacturing costs incurred= $56,500

Explanation:

Calculation for Direct manufacturing costs

First Step

Direct materials $6

Add Direct labor $3.5

Total $9.5

Second step is to calculate for the total amounts of direct manufacturing costs that is incurred .

Hence,

Direct manufacturing costs incurred = 11,000 ×$9.5

Direct manufacturing costs incurred = $104,500

Therefore the total amounts of direct manufacturing costs incurred to support this level of production will be $104,500

Calculation for Indirect manufacturing costs

First step

Fixed manufacturing overhead $4.00×

10,000 units= $40,000

Second step to calculate for the total amounts of Indirect manufacturing costs that is incurred

Hence,

Indirect manufacturing costs incurred =$40,000 + ($1.50 × 11,000)

Indirect manufacturing costs incurred=$40,000+$16,500

Indirect manufacturing costs incurred= $56,500

Therefore the total amounts of Indirect manufacturing costs incurred to support this level of production will be $56,500

adefioyelaoye

The total amounts of direct and indirect manufacturing costs include:

  • Direct manufacturing costs incurred = $104,500
  • Indirect manufacturing costs incurred= $56,500

We can calculate the direct manufacturing cost below:

Direct materials = $6

Direct labor       = $3.5

Total                  = $9.5

The total amount of Direct manufacturing costs

= 11,000 ×$9.5

= $104,500

We can then calculate the Indirect manufacturing cost

Fixed manufacturing overhead

=$4.00× 10,000 units

= $40,000

The total amount of Indirect manufacturing costs

=$40,000 + ($1.50 × 11,000)

=$40,000+$16,500

= $56,500

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