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24 June, 21:38

9) Given the following information, compute the total number of units for the period: Direct labor hours 12,000 Direct labor cost $ 2.70 per hour Direct materials cost $ 75 per unit Total manufacturing cost $ 132,600 Fixed overhead cost $ 36,000 Variable overhead cost 50 % of total labor cost 9) A) 360. B) 840. C) 640. D) 432

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  1. 24 June, 21:53
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    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
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