Question

For the indicated units produced, Ramsey, LLC reported the costs shown below:

Units produced:		8,200		2,700
Total direct material:		$179,580		$59,130
Total direct labor:		$139,400		$45,900
Total manufacturing overhead:		$809,397		$703,797

Part A: Ramsey, LLC's variable manufacuring cost per unit for is closest to:

$58.10

$38.90

$21.90

$19.20

$36.20

Part B: Ramsey, LLC 's fixed manufacuring cost is:

$968,602

$651,957

$1,128,377

$808,827

Part C: at a level of 5,500 units, Ramsey, LLC's total manufacuring cost would be:

$1,647,611

$756,838

$1,202,224

$971,507

Answer 1

Part A)	Variable overhead per unit = ($809397-703797)/(8200-2700)
	=$19.20
	Direct material per unit = $179580/8200 units
	=21.9
	Direct Labor cost per unit =$139400/8200
	=$17
	Total variable cost per unit = $19.20+21.9+17
	=$58.10
Part B)	Total overhead for 8200 units = $809397
	Variable overhead = 8200*19.20 =$157440
	Fixed overhead/manufacturing cost= $809397-157440
	=$651957
Part C)	Total cost for 5500 units = variable cost +fixed cost
	= (5500*$58.10) + 651957
	=$319550+651957
	=$971507