Meginnis orporati elevant ange f ctivity s ,000 nits o ,000 nits. hen t roduces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufactu overhead $ 1.65 2.60 Fixed manufacturing overhead Fixed selling expense 0.50 Fixed administrative expense $ 0.40 $ 1.50 Sales commissions Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: %24 %24 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: O $62,700 O $79,200 O $53,700 $63,600 O $63,600 < Previous Next %24

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Meginnis orporati elevant ange f ctivity s ,000 nits o ,000 nits. hen t roduces and
sells 5,000 units, its average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$ 5.20
Direct labor
$ 3.75
Variable manufactu overhead
$ 1.65
2.60
Fixed manufacturing overhead
Fixed selling expense
0.50
Fixed administrative expense
$ 0.40
$ 1.50
Sales commissions
Variable administrative expense
$ 0.50
If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
%24
%24
Transcribed Image Text:Meginnis orporati elevant ange f ctivity s ,000 nits o ,000 nits. hen t roduces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufactu overhead $ 1.65 2.60 Fixed manufacturing overhead Fixed selling expense 0.50 Fixed administrative expense $ 0.40 $ 1.50 Sales commissions Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: %24 %24
Direct labor
$ 3.75
Variable manufacturing overhead
$ 1.65
Fixed manufacturing overhead
$ 2.60
Fixed selling expense
$ 0.50
Fixed administrative expense
$ 0.40
Sales commissions
$ 1.50
Variable administrative expense
0.50
If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
O $62,700
O $79,200
O $53,700
$63,600
O $63,600
< Previous
Next
%24
Transcribed Image Text:Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: O $62,700 O $79,200 O $53,700 $63,600 O $63,600 < Previous Next %24
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