Question

Expected manufacturing costs for Canarie Data Devices are as follows:

Variable Costs				Fixed Costs per Month
Direct material		$7.00/unit		Supervisory salaries		$21,000
Direct labor		3.00/unit		Factory depreciation		11,800
Variable overhead		2.30/unit		Other factory costs		2,800

Estimate manufacturing costs for production levels of 14,000 units, 17,000 units, and 20,500 units per month.

		14,000 units		17,000 units		20,500 units
Manufacturing costs		$		$		$

Answer 1

Manufacturing Cost Budget
Units	14,000	17,000	20,500
Variable costs:
Direct materials ($7 per unit)	$98,000	$119,000	$143,500
Direct labor ($3 per unit)	$42,000	$51,000	$61,500
Variable overhead ($2.30 per unit)	$32,200	$39,100	$47,150
Total variable costs (A)	$172,200	$209,100	$252,150
Fixed costs:
Supervisory salaries	$21,000	$21,000	$21,000
Factory depreciation	$11,800	$11,800	$11,800
Other factory costs	$2,800	$2,800	$2,800
Total fixed costs (B)	$35,600	$35,600	$35,600
Manufacturing costs (A+B)	$207,800	$244,700	$287,750

Estimate manufacturing costs for production levels of 14,000 units, 17,000 units, and 20,500 units per month.

		14,000 units		17,000 units		20,500 units
Manufacturing costs		$207,800		$244,700		$287,750

Kindly comment if you need further assistance.

Thanks‼!