Answer:
Direct manufacturing costs incurred = $104,500
Indirect manufacturing costs incurred= $56,500
Explanation:
Calculation for Direct manufacturing costs
First Step
Direct materials $6
Add Direct labor $3.5
Total $9.5
Second step is to calculate for the total amounts of direct manufacturing costs that is incurred .
Hence,
Direct manufacturing costs incurred = 11,000 ×$9.5
Direct manufacturing costs incurred = $104,500
Therefore the total amounts of direct manufacturing costs incurred to support this level of production will be $104,500
Calculation for Indirect manufacturing costs
First step
Fixed manufacturing overhead $4.00×
10,000 units= $40,000
Second step to calculate for the total amounts of Indirect manufacturing costs that is incurred
Hence,
Indirect manufacturing costs incurred =$40,000 + ($1.50 × 11,000)
Indirect manufacturing costs incurred=$40,000+$16,500
Indirect manufacturing costs incurred= $56,500
Therefore the total amounts of Indirect manufacturing costs incurred to support this level of production will be $56,500
