Question

Glew Corporation has provided the following information:

	Cost per Unit		Cost per Period
Direct materials	$	6.00
Direct labor	$	3.35
Variable manufacturing overhead	$	1.75
Fixed manufacturing overhead			$	8,800
Sales commissions	$	1.00
Variable administrative expense	$	0.40
Fixed selling and administrative expense			$	4,000

If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Multiple Choice

$33,300

$31,050

$28,050

$39,900

Answer 1

		Cost PU	Cost Per Period
	Direct materials	6.00
	Direct labor	3.35
	Variable manufacturing overhead	1.75
	Fixed manufacturing overhead		8800
	Sales commissions	1.00
	Variable administrative expense	0.40
	Fixed selling and administrative expense		4000
	Manufacturing Cost for 3000 Units:
	Variable Cost:	Cost PU	Total
	Direct materials	6.00	18000
	Direct labor	3.35	10050
	Variable manufacturing overhead	1.75	5250
	Total Manufacturing Cost		33300
Note 1	Assumed Variable Costing is followed
Note 2	Fixed MOH are not part of Unit cost in Variable Costing
Note 3	Variable & Fixed Selling & Administrative Costs are not part of Product Cost