If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: O $79,200 O $63,600 O $62,700 O $53,700

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$79,200
O $63,600
O $62,700
SA
O $53,700
$
$
$
$
2.60
0.50
If 6,000 units are produced, the total amount of direct manufacturing cost
incurred is closest to:
0.40
1.50
0.50
Transcribed Image Text:Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $79,200 O $63,600 O $62,700 SA O $53,700 $ $ $ $ 2.60 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: 0.40 1.50 0.50
Trenton Corporation's relevant range of activity is 3,000 units to 7,000
units. When it produces and sells 5,000 units, its average costs per unit
are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per Unit
$5.20
$
$
$
$ 2.60
3.75
$
1.65
$
$ 0.40
0.50
1.50
0.50
If 6,000 units are produced, the total amount of direct manufacturing cost
incurred is closest to:
Transcribed Image Text:Trenton Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $5.20 $ $ $ $ 2.60 3.75 $ 1.65 $ $ 0.40 0.50 1.50 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Expert Solution
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Solution:

Direct manufacturing cost is the cost of direct materials and direct labor.

manufacturing overhead is considered as indirect manufacturing costs.

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