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Homework answers / question archive / ABC Manufacturing currently produces 1,500 units per month
ABC Manufacturing currently produces 1,500 units per month. The following per unit data apply for sales to regular customers: Direct materials used $ 401 Direct labor $ 6 $12 Variable manufacturing overhead Fixed manufacturing overhead $20 Fi Total manufacturing costs $78 THE Selling & Administrative expenses $ 22 Total costs $ 100 The plant has capacity for 2,000 units and is considering expanding production to 1.800 units. What is the total cost of producing 1.800 units Select one: a. $ 180,000 b. $ 140,400 c. $ 156.000 O d. $ 184,400
Statement Showing Production Cost
1800 Units
| Direct Material Used ($40 × 1800 units) | $72,000 | |
| Direct Labor ($6 × 1800 units) | $10,800 | |
|
Variable Manufacturing overhead ($12 × 1800 units) |
$21,600 |
|
| Fixed Manufacturing Cost ($20 × 1500) | $30,000 | |
| Total Cost Of Producing | $ 134,400 | |
| Option D is Correct. | ||
