Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Product costs include:
Direct materials per pair 12
Direct labor per pair= 8 (invented)
Variable factory overhead per pair= 4 (invented)
Total fixed factory overhead 30,000
Variable selling expense is a commission of $3 per pair
fixed selling and administrative expense totaled $48,000.
1) Total variable cost= unitary cost* number of units
Unitary variable cost= direct material + direct labor + variable overhead
Unitary variable cost= 12 + 8 + 4= 24
Total variable cost= 3,500*24= $84,000
<u>Variable selling expense is not part of the product cost.</u>
2) Total fixed expense= fixed overhead + fixed selling and administrative expense
Total fixed expense= 30,000 + 48,000= $78,000
