Anybody good with accounting problems?

Discussion in 'Community Discussion' started by budselectjr, Oct 21, 2009.

  1. budselectjr macrumors 6502a

    Joined:
    Oct 6, 2009
    Location:
    Minnesota
    #1
    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?
     
  2. Surely Guest

    Surely

    Joined:
    Oct 27, 2007
    Location:
    Los Angeles, CA
    #2
    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?
     
  3. callmemike20 macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #3
    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.
     
  4. CorvusCamenarum macrumors 65816

    CorvusCamenarum

    Joined:
    Dec 16, 2004
    Location:
    Birmingham, AL
    #4
    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.
     
  5. callmemike20 macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #5
    Looks like we got the same answer Corvus. It must be right.
     
  6. Surely Guest

    Surely

    Joined:
    Oct 27, 2007
    Location:
    Los Angeles, CA
    #6
    It looks like they are two columns. That's what I get for reading the forums on my iPhone. :D

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

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