Question

Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department

Answer 1

$350,000

Step-by-step explanation:

The computation of the total manufacturing cost directly traceable is as follows:

= (Direct material per unit + direct labor per unit+ variable manufacturing overhead per unit + fixed overhead per unit) × number of units sold

= ($7 + $4 + $1.50 + $5) × 20,000 units

= $17.50 × 20,000 units

= $350,000