The following amounts of various cost categories are experienced by Columbia Fac

Question

The following amounts of various cost categories are experienced by Columbia Factories in producing and selling its only product: Direct material $8.00 per unit of product Direct labor $10.00 per direct labor hour* Manufacturing overhead $12,000 + $4.00 per direct labor hour Selling expenses $14,000 + $3.00 per unit of product Administrative $7,000 + $0.50 per unit of product *Each unit of product requires one-half direct labor hour. Combine the various cost factors into a general total cost formula for Columbia Factories and determine the total cost of producing and selling 20,000 units.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Variable per unit Fixed Direct Material                      8.00 Direct Labour = 10*.50                      5.00 Manufacturing overhead = 4*.5                      2.00            12,000.00 Selling expenses                      3.00            14,000.00 Administratove expenses                      0.50              7,000.00 Total Costs                    18.50            33,000.00 general total cost formula = 33,000 + 18.50x total cost of producing and selling 20,000 units = 33000 + 18.50*20,000         403,000.00

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