Answer:
The correct answer is D.
Explanation:
Giving the following information:
The following data pertains to activity and costs for two months:
June July
Activity level in units 10,000 12,000
Direct materials $ 16,000 $ ?
Fixed factory rent 12,000 ?
Manufacturing overhead 10,000 ?
Total cost $ 38,000 $ 42,900
First, we need to calculate the unitary variable cost of direct material and direct labor.
Unitary cost Direct material= 16,000/10,000= 1.6 per unit
Unitary cost Direct Labor= 12,000/10,000= 1.2 per unit
Now, we calculate the cost of the prime costs of 12,000 units:
Direct material= 1.6*12,000= 19,200
Direct labor= 1.2*12,000= 14,400
Total= $33,600
Manufacturing overhead= 42,900 - 33,600= $9,300
