Answer:
1. $296,050
2. $141,050
3. $330,300
4. $135,300
Explanation:
Given that,
When company produces and sells 15,500 units;
Direct materials = $ 7.40
Direct labor = $ 4.40
Variable manufacturing overhead = $ 1.90
Fixed manufacturing overhead = $ 5.40
Fixed selling expense = $ 3.90
Fixed administrative expense = $ 2.90
Sales commissions = $ 1.40
Variable administrative expense = $ 0.90
1. Total amount of product costs:
= Number of units × (Direct Material Per Unit + Direct Labor Per Unit + Variable Manufacturing Overhead + Fixed Manufacturing Overhead Per Unit)
= 15,500 × ($ 7.40 + $ 4.40 + $ 1.90 + $5.40)
= 15,500 × $19.10
= $296,050
2. Total Amount of Period Costs:
= Number of Units × (Fixed Selling Expense Per Unit + Fixed Administrative Expense Per Unit + Sales Commissions Per Unit + Variable Administrative Expense Per Unit)
= 15,500 × ($ 3.90 + $ 2.90 + $1.40 + $0.90)
= $141,050
3. Total amount of product costs at 18,000 units:
= Direct Material + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead
= (18,000 × 7.40) + (18,000 × 4.40) + (18,000 × 1.90) + (15,500 × 5.40)
= $133,200 + $79,200 + $34,200 + $83,700
= $330,300
4. Total amount of period costs at 13,000 units:
= Fixed Selling Expense + Fixed Administrative Expense + Sales Commissions + Variable Administrative Expense
= (15,500 × $3.90) + (15,500 × $2.90) + (13,000 × $1.40) + (13,000 × $0.90)
= $60,450 + $44,950 + $18,200 + $11,700
= $135,300
