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

A) $26,550
B) $23,550
C) $33,300
D) $27,300

Question

If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:A) $26,550B) $23,550C) $33,300D) $27,300

Jason Rando · Accepted Answer

Final Answer : B, Explanation :  Direct manufacturing cost per unit = (direct material per unit + direct labor per unit + other direct expenses per unit) = ($4 + $5 + $0.50) = $9.50Total direct manufacturing cost for 3,000 units = (direct manufacturing cost per unit x number of units) = ($9.50 x 3,000) = $28,500However, we are given that there was a $5,000 favorable variance in direct labor, which means the actual direct labor cost incurred was $5,000 less than the standard cost for direct labor. Therefore, the actual total direct manufacturing cost incurred for 3,000 units = $28,500 - $5,000 = $23,500, which is closest to option B ($23,550).

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

A) $26,550
B) $23,550
C) $33,300
D) $27,300

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