Menk Corporation has provided the following information:??Cost per UnitCost per Period?Direct materials$6.25??Direct labor$3.25??Variable manufacturing overhead$1.45??Fixed manufacturing overhead?$18,000?Sales commissions$0.50??Variable administrative expense$0.40??Fixed selling and administrative expense?$9,000Required:a. If 5,000 units are sold, what is the variable cost per unit sold?b. If 5,000 units are sold, what is the total amount of variable costs related to the units sold?c. If 5,000 units are produced, what is the total amount of manufacturing overhead cost incurred?

What will be an ideal response?


a.

?Direct materials$6.25
?Direct labor3.25
?Variable manufacturing overhead1.45
?Sales commissions0.50
?Variable administrative expense  0.40
?Variable cost per unit sold$11.85

b.
?Variable cost per unit sold (a)$11.85
?Number of units sold (b)5,000
?Total variable costs (a) × (b) $59,250

c.
?Total variable manufacturing overhead cost 
($1.45 per unit × 5,000 units)
$7,250
?Total fixed manufacturing overhead cost   18,000
?Total manufacturing overhead cost (a) $25,250

Business

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