Answer:
Total cost= $2,008,608
Explanation:
Giving the following information:
Production 11,800 units 13,000 units
Direct materials: $761,100 - $838,500
Direct labor: $241,900 - $266,500
Manufacturing overhead: $1,010,800 - $1,035,280
First, we need to calculate the unitary cost for each level of production and choose the lower cost for each:
11,800 units:
Direct material= 761,100/11,800= $64.5
Direct labor= 241,900/11,800= $20.5
Variable overhead= 1,010,800/11,800= $85.66
Total unitary cost= 170.66
13,000 units:
Direct material= 838,500/13,000= 64.5
Direct labor= 266,500/13,000= $20.5
Variable overhead= 1,035,280 /13,000= $79.64
Total unitary cost= 164.64
<u>Total cost for 12,200 units:</u>
Total cost= 12,200*164.64= $2,008,608
