Question

Complete the following table: Round all per unit amounts to the nearest penny (2 places to the right of the decimal point.) Round total cost amounts to the nearest dollar.

January	February
Units produced and sold	18000	23400
Total costs:
Direct labor		355680
Direct materials		184860
Variable overhead costs		180180
Factory rent	320000
Sales commissions		98280
Administrative salaries	141000
Per unit costs for select rows:
Direct labor	15.20
Direct materials	7.90
Factory rent
Administrative salaries

Answer 1

Here, Direct materials, direct labor, variable overhead costs and sales commission are variable costs, whereas factory rent and administrative salaries are fixed costs.

	January	February
Units produced and sold	18000	23400
Total costs:
Direct labor [ per unit cost * Units ]	273600	355680
Direct materials [ per unit cost * Units ]	142200	184860
Variable overhead costs [ per unit cost * units ]	138600	180180
Factory rent	320000	320000
Sales commission [ per unit cost * units ]	75600	98280
Administrative salaries	141000	141000
Per unit cost for select rows :
Direct labor	15.20	15.20
Direct materials	7.90	7.90
Factory rent [ Total cost / Units ]	17.78	13.68
Administrative salaries [ Total cost / Units ]	7.83	6.03

working note :

1] Variable overhead cost per unit = 180180 / 23400 = 7.7

2] Sales commission per unit = 98280 / 23400 = 4.2