Given the following information, compute the total number of units for the period:
$$\begin{array} { l l}
\text { Direct labor hours } & { 12,000 } \
\text { Direct labor cost } & \$ 2.70 \text { per hour } \
\text { Direct materials cost } & \$ 75 \text { per unit } \
\text { Total maruffacturing cost } & \$ 132,600 \
\text { Fixed overhead cost } & \$ 36,000\
\text { Variahle owerhead cost }&\text { $ 500 \% $ of total labor cost}
\end{array}$$
A) 360.
B) 432.
C) 640.
D) 840.

Question

Given the following information, compute the total number of units for the period:
$$\begin{array} { l l} 
\text { Direct labor hours } & { 12,000 } \
\text { Direct labor cost } & \$  2.70 \text { per hour } \
\text { Direct materials cost } & \$  75 \text { per unit } \
\text { Total maruffacturing cost } & \$ 132,600 \
\text { Fixed overhead cost } & \$  36,000\
\text { Variahle owerhead cost }&\text { $ 500 \% $ of total labor cost}
\end{array}$$
A) 360.
B) 432.
C) 640.
D) 840.

Quizplus · Accepted Answer

Total labor cost = 12,000 hours * $2.70 per hour = $32,400Variable overhead cost = 500% of total labor cost = 5 * $32,400 = $162,000Total manufacturing cost = $132,600Total variable cost = $32,400 + $162,000 = $194,400Units produced = Total manufacturing cost / Total variable cost per unitTotal variable cost per unit = Direct materials cost + Variable overhead cost per unitVariable overhead cost per unit = Variable overhead cost / Units producedUnits produced = $132,600 / ($75 + $162,000 / Units produced)Solving for Units produced, we get Units produced = 640 units.

Given the Following Information, Compute the Total Number of Units