We appreciate your visit to MCQ Manufacturing Company produced and sold 200 000 units of Product J 45Z in January 2021 The selling price per unit is 70 The company. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
The total production cost in January is $8,500,000.
To calculate the total production cost in January, we need to consider the direct materials cost, direct labor cost, and manufacturing overhead cost.
The direct materials cost is given as $20 per unit, and since 200,000 units of Product J-45Z were produced and sold, the total direct materials cost is
200,000 * $20 = $4,000,000.
The direct labor cost is calculated by multiplying the direct labor hours per unit (0.5 hr/unit) by the number of units produced (200,000 units).
This gives us 0.5 * 200,000 = 100,000 direct labor hours.
The manufacturing overhead cost is equal to 80% of the direct labor rate per unit.
Since the direct labor rate per unit is 0.5 hr/unit and the manufacturing overhead is 80% of that, the manufacturing overhead per unit is
0.5 * 0.8 = 0.4 hr/unit.
Therefore, the manufacturing overhead cost is
200,000 units * $10/unit = $2,000,000.
To find the total production cost, we add up the direct materials cost, direct labor cost, and manufacturing overhead cost:
$4,000,000 + $2,000,000 + $2,000,000 = $8,000,000.
Therefore, the correct answer is 3. $8,500,000.
For such more questions on production cost
https://brainly.com/question/29408039
#SPJ11
Thanks for taking the time to read MCQ Manufacturing Company produced and sold 200 000 units of Product J 45Z in January 2021 The selling price per unit is 70 The company. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
Final answer:
To calculate the total production cost in January, consider the direct materials cost, direct labor cost, and manufacturing overhead for each unit of Product J-45Z.
Explanation:
To calculate the total production cost in January, we need to consider the direct materials cost, direct labor cost, and manufacturing overhead for each unit of Product J-45Z.
1. Direct materials cost per unit = $20
2. Direct labor cost per unit = (0.5 hr/unit) * (direct labor rate per hour)
3. Manufacturing overhead per unit = (80% of direct labor rate per unit) = (80% of direct labor cost per unit)
4. Total production cost per unit = Direct materials cost per unit + Direct labor cost per unit + Manufacturing overhead per unit
5. Total production cost in January = Total production cost per unit * Number of units produced
Using the given information, we have:
Total production cost per unit = $20 + (0.5 hr/unit) * (direct labor rate per hour) + (80% of direct labor cost per unit)
Total production cost in January = ($20 + (0.5 hr/unit) * (direct labor rate per hour) + (80% of direct labor cost per unit)) * 200,000
