1.
Direct labor cost = $14760
This is 30% of total conversion cost so, conversion cost = 14760/30%
= $49200
Total conversion cost = Direct labor + Manufacturing overhead
Manufacturing overhead = Total conversion cost - Direct labor
=49200-14760 = $34440
Hence, The total manufacturing overhead cost= $34440
2.
Direct labor = $14760
This is 40% of prime cost. So total prime cost = 14760/40%
= $36900
Total prime cost = Direct material + Direct labor
Direct material = Total prime cost - Direct labor
= 36900 - 14760 = 22140
Hence, the total direct materials cost = $22140
3.
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead
= 22140+14760+34440 = $71340
4.
Variable selling and administrative cost = 5% of 123000
=$ 6150
5.
Total variable cost = Direct materials + Direct labor + Sales commission
= 22140 + 14760 + 6150 =$43050
6.
Fixed selling and administrative expense = Total selling and administrative expense - Sales commission = 18450-6150 = $12300
Total fixed cost = Manufacturing overheads + Fixed selling and administrative expense
= 34440+12300 = $46740
7.
Total contribution margin = Sales - Total variable cost
= 123000 - 43050 = $79950
