Anybody good with accounting problems?

[budselectjr]

Carbert Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production Volume........... 4,000 units 5,000 units
Direct Materials................ $45.70 per unit $45.70 per unit
Direct Labor...................... $40.70 per unit $40.70 per unit
Manufacturing overhead.. $134.80 per unit $110.70 per unit

The best estimate of the total cost to manufacture 4,300 units would be?

Any help on how I can solve this?

 

[Surely]

I'm good with Accounting problems.

But it seems like the question you posted isn't formatted properly. Are there supposed to be two columns of numbers?

 

[callmemike20]

Carbert Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production Volume........... 4,000 units 5,000 units
Direct Materials................ $45.70 per unit $45.70 per unit
Direct Labor...................... $40.70 per unit $40.70 per unit
Manufacturing overhead.. $134.80 per unit $110.70 per unit

The best estimate of the total cost to manufacture 4,300 units would be?

Any help on how I can solve this?

The only thing that seems to change is the overhead. So...

4300(45.70) + 4300(40.70) + 4300[134.80-(((134.80-110.70)/10)*3)] = 196,510 + 175,010 + 548,551 = $920,071.00

That is assuming the overhead decreases at a constant rate.

 

[CorvusCamenarum]

Materials= (45.70*4300)=196510
Labor = (40.70*4300)=175010

Overhead is where it gets tricky. You want 30% of the way from 134.80 down to 110.70.

134.80-110.70=24.10
24.10*.3=7.23
134.80-7.23=127.57
127.57*4300=548551

Total Cost = 196510+175010+548551 = 920071


I think.

 

[callmemike20]

Looks like we got the same answer Corvus. It must be right.

 

[Surely]

It looks like they are two columns. That's what I get for reading the forums on my iPhone.

I can confirm that I also got the same answer as the two above.