Variable Fixed
(per
unit) (total)
Manufacturing costs:
Direct materials
A (4 lb. @ $3.15/lb.)
$12.60
B (2 lb. @ $4.65/lb.)
9.30
Direct labor (0.5 hours per unit)
7.50
Manufacturing overhead:
Depreciation
$7,650
Factory supplies
0.90 4,500
Supervisory salaries
28,800
Other
0.75 22,950
Operating expenses:
Selling:
Advertising
22,500
Sales salaries& commissions*
1.50 15,000
Other*
0.90 3,000
Administrative:
Office salaries
2,700
Supplies
0.15 1,050
Other
0.08 1,950
*Varies per unit sold, not per unit produced.