Chapter 18, Problem 10E

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A firm sells 3,800 units of an item each year. The carrying cost per unit is $3.56 and the fixed costs per order are $84. What is the economic order quantity? (Please round units to the nearest whole number)

Colson Manufacturing uses a job order costing system.During one month, Colson purchased $178,000 of raw materials on credit; issued materials to the production of $267,000 ofwhich $16,000 were indirect. Colson incurred a factory payroll of $192,000, of which $35,000 was indirect labor. Colson uses apredetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are_.

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