Calculation of Total Manufacturing Cost


X Company manufactures a single product and estimates total manufacturing costs each month. The accountant provides the following information about its manufacturing process:

        Direct material quantity                1.5 pounds per unit of finished product

        Direct material price                       $22.20 per pound

        Direct labor time                            1.1 hours per unit of finished product

        Direct labor wage rate                    $12.20 per hour

The monthly overhead cost function is $3,800 + $2.05X, where X is the number of units produced. If X Company expects to produce 960 units in march, what are estimated total manufacturing costs for march?

Summary: This question belongs to accounting and discusses about manufacturing costs and to estimate total manufacturing costs of a company.

Total word count: 30


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