Answer:
C) 640 units
Explanation:
Given that
Total manufacturing cost = $132,600
Per unit material cost = $75
Fixed overhead cost = $36,000
Variable overhead cost = 50% of total labor cost
The computation of total number of units is given below:-
Variable overhead cost
= 12,000 × $2.70 × 50%
= $16,200
Direct labor cost
= 12,000 × $2.70
= $32,400
Total Direct material cost = Total manufacturing cost - Variable overhead cost - Fixed overhead cost - Direct labor cost
= $132,600 - $16,200 - $36,000 - $32,400
= $48,000
Total number of units = Total Direct material cost ÷ Direct materials cost
= $48,000 ÷ $75
= 640 units
