Question

If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

Answer 1

F 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? 

Variable manufacturing overhead $ 1.50 
Fixed manufacturing overhead $ 4.00 x 10,000 = $40,000 
40,000 + (1.50 x 8,000) = $52,000 total overhead 

If 8,000 units are produced, What is this total amount expressed on a per unit basis? (Round your answer to 2 decimal places.) 
Variable manufacturing overhead $ 1.50 
Fixed manufacturing overhead $40,000 / 8,000 = $5.00 

5,00 + 1.50 = $6.50 manufacturing overhead per unit