5 Interlibrary Loan Clicker Question Preparation Guide: Ch. 10 Clicker questions

Question

5 Interlibrary Loan Clicker Question Preparation Guide: Ch. 10 Clicker questions will be a skedn d on your completion of this preparation guide. Example in class question "Question 1) What are the total manufacturing costs when 900 units are produced? You will not ha time to complete this guide in class (yber Construction's manufacturing costs for August when production was 1.,000 units appear below: Direct Materials Direct Labor Variable Overhead Factory Depreciation Factory Supervisory Salaries Other Fixed Factory Costs $11,000 $8,500 $6,000 $4,000 59,800 $1,500 Compute the flexible budget manufacturing cost amount for a month when 900 units are produced Direct Materials Direct Labor Variable Overhead Factory Depreciation Factory Supervisory Salaries Other Fixed Factory Costs Total

Explanation / Answer

**variable cost varies with level of sales whereas fixed cost remain constant irrespective of volume.

Direct material [11000*900/1000] 9900 Direct labor      [8500*900/1000] 7650 variable overhead [6000*900/1000] 5400 Factory depreciation 4000 Factory supervisory salaries 9800 other fixed factory cost 1500 Total 38250

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