Skolnick Corporation has provided the following information:??Cost per UnitCost per Period?Direct materials$5.70??Direct labor$3.60??Variable manufacturing overhead$1.50??Fixed manufacturing overhead?$121,500?Sales commissions$1.00??Variable administrative expense$0.45??Fixed selling and administrative expense?$36,450Required:a. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?b. If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
What will be an ideal response?
a.
| ? | Direct materials | $5.70 |
| ? | Direct labor | 3.60 |
| ? | Direct manufacturing cost per unit (a) | $9.30 |
| ? | Number of units produced (b) | 8,000 |
| ? | Total direct manufacturing cost (a) × (b) | $74,400 |
b.
| ? | Total variable manufacturing overhead cost ($1.50 per unit x 8,000 units) | $12,000 |
| ? | Total fixed manufacturing overhead cost | 121,500 |
| ? | Total indirect manufacturing cost | $133,500 |
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