Dozier Company produced and sold 1,000 units during its first month of operation

Question

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:

2. With respect to cost classifications for assigning costs to cost objects:

a. What is total direct manufacturing cost?

b. What is the total indirect manufacturing cost?

Direct materials $ 74,000 Direct labor $ 37,500 Variable manufacturing overhead $ 17,000 Fixed manufacturing overhead 29,500 Total manufacturing overhead $ 46,500 Variable selling expense $ 13,000 Fixed selling expense 20,000 Total selling expense $ 33,000 Variable administrative expense $ 4,500 Fixed administrative expense 26,000 Total administrative expense $ 30,500

Explanation / Answer

A) $111,500

B) $46,500

A) Total Direct manufacturing cost = Direct Materials + Direct Labor

= $74,000+37,500=111,500

B) Total Indirect manufacturing cost = Variable MOH +Fixed MOH

= $17,000+29,500

= $46,500

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