Harris Company manufactures a single product. Costs for the year 2015 for output

Question

Harris Company manufactures a single product. Costs for the year 2015 for output levels of 1,000 and 2,000 units are given in the table. At each level compute the following:

A. Total manufacturing costs

B. Manufacturing costs per unit

C.Total Variable cost

D. Total variable cost per unit

E. Total costs that have to be recovered if the firm makes a profit

Table:

If possible please show all work

Unit Produced 1000 2000 Direct labor $30,000 $60,000 Direct materials $20,000 $40,000 Overhead: Variable portion $12,000 $24,000 Fixed portion $36,000 $36,000 Selling and adm cost Variable portion $5,000 $10,000 Fixed portion $22,000 $22,000

Explanation / Answer

Unit Produced 1000 2000 Direct labor $30,000 $60,000 Direct materials $20,000 $40,000 Overhead: Variable portion $12,000 $24,000 Fixed portion $36,000 $36,000 Selling and adm cost Variable portion $5,000 $10,000 Fixed portion $22,000 $22,000 Total manufacturing costs (Sum of all costs) 125000 192000 Manufacturing costs per unit (Total Cost / number of units) 125 96 Total Variable cost (Sum of variable portion) 17000 34000 Total variable cost per unit (TVC/ Number of units) 17 17 Total costs that have to be recovered if the firm makes a profit Same as total manufacturing cost 125000 192000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.