Answer:
Required 1
<u>Part a</u>
<em>Total Product cost = Variable manufacturing costs + Fixed manufacturing costs</em>
where,
Variable manufacturing costs = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50
Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50
therefore,
Total Product cost = $147.50 + $32.50 = $180.00
<u>Part b</u>
<em>Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs</em>
where,
variable non- manufacturing costs = $15,000 + $5,500 = $20,500
fixed non-manufacturing costs = $24,000 + $28,000 = $52,000
therefore,
Total period cost = $20,500 + $52,000 = $72,500
Required 2
<u>Part a</u>
<em>total direct manufacturing cost = Direct Materials + Direct Labor + Direct (Variable) Manufacturing Overheads</em>
therefore,
total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500
<u>Part b</u>
<em>total indirect manufacturing cost = fixed manufacturing costs</em>
therefore
total indirect manufacturing cost = $32,500
Required 3
<u>Part a</u>
<em>total manufacturing cost = variable manufacturing cost + fixed manufacturing costs</em>
therefore,
total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000
<u>Part b</u>
<em>total non-manufacturing cost = variable non-manufacturing cost + fixed non-manufacturing cost</em>
therefore,
total non-manufacturing cost = $20,500 + $52,000 = $72,500
<u>Part c</u>
<em>total conversion cost = direct labor cost + manufacturing overheads</em>
therefore,
total conversion cost = $42,500 + $21,000 + $32,500 = $96,000
<em>prime cost = direct material + direct labor</em>
therefore,
prime cost = $84,000 + $42,500 = $126,500
Required 4
<u>Part a</u>
<em>total variable manufacturing cost = direct materials + direct labor + variable manufacturing costs</em>
therefore,
total variable manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500
<u>Part b</u>
<em>total fixed cost = fixed manufacturing costs + fixed non-manufacturing costs</em>
therefore,
total fixed cost = $32,500 + $52,000 = $84,500
<u>Part c</u>
<em>variable cost per unit produced and sold = variable manufacturing cost + variable non-manufacturing</em>
therefore,
variable cost per unit produced and sold = $147.50 + ($20,500 ÷ 1,000) = $168.00
Required 5
<em>incremental manufacturing costs = variable manufacturing costs</em>
therefore,
incremental manufacturing cost = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50
