The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:
$$\begin{array} { l l }
\text { Direct materials } & 2 \mathrm{lb} . @ \$ 40=\$ 80 \
\text { Direct labor } & 1 \mathrm{hr} . @ \$ 48=\$ 48 \
\text { Variable overhead } & 75 \% \text { of direct labor costs } \
\text { Fixed overnead } & 50 \% \text { of direct labor costs }
\end{array}$$ What is the total cost reported in the manufacturing cost budget?

Question

The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:
$$\begin{array} { l l } 
\text { Direct materials } & 2 \mathrm{lb} . @ \$ 40=\$ 80 \
\text { Direct labor } & 1 \mathrm{hr} . @ \$ 48=\$ 48 \
\text { Variable overhead } & 75 \% \text { of direct labor costs } \
\text { Fixed overnead } & 50 \% \text { of direct labor costs }
\end{array}$$ What is the total cost reported in the manufacturing cost budget?

Quizplus · Accepted Answer

The Answer of The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:
$$\begin{array} { l l } 
\text { Direct materials } & 2 \mathrm{lb} . @ \$ 40=\$ 80 \
\text { Direct labor } & 1 \mathrm{hr} . @ \$ 48=\$ 48 \
\text { Variable overhead } & 75 \% \text { of direct labor costs } \
\text { Fixed overnead } & 50 \% \text { of direct labor costs }
\end{array}$$ What is the total cost reported in the manufacturing cost budget?

The Mighty Manufacturing Company Expects to Incur the Following Per