Devlin Manufacturing makes a single product. Expected manufacturing costs are as follows:Variable costsDirect materials $6.50 per unitDirect labor 2.40 per unitManufacturing overhead 1.10 per unitFixed costs per monthSupervisory salaries $13,600Depreciation 5,500Other fixed costs 2,200Determine the amount of manufacturing costs for a flexible budget level of 3,200 units per month.

Question

Kae

Business

11 March, 17:57

Devlin Manufacturing makes a single product. Expected manufacturing costs are as follows:Variable costsDirect materials $6.50 per unitDirect labor 2.40 per unitManufacturing overhead 1.10 per unitFixed costs per monthSupervisory salaries $13,600Depreciation 5,500Other fixed costs 2,200Determine the amount of manufacturing costs for a flexible budget level of 3,200 units per month.

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Sarahi Walls · Answer 1

Manufacturing cost: $

Direct material ($6.50 x 3,200) 20,800

Direct labour ($2.40 x 3,200) 7,680

Manufacturing overhead ($1.10 x 3,200) 3,520

Supervisory salaries 13,600

Depreciation 5,500

Other fixed costs 2,200

Total manufacturing cost 53,300

Explanation:

Total manufacturing cost is the aggregate of direct material, direct labour, variable manufacturing overhead and fixed costs. Fixed costs include supervisory salaries, depreciation and other fixed costs. Direct material cost per unit, direct labour cost per unit and manufacturing overhead cost per unit should be multiplied by the budgeted units per month.