Question: Average Cost per Unit Direct materials $ 8.40 Direct labor $ 5.40 Variable manufacturing overhead $ 2.90 Fixed manufacturing overhead $ 6.40 Fixed selling expense

Average Cost per Unit
Direct materials $ 8.40
Direct labor $ 5.40
Variable manufacturing overhead $ 2.90
Fixed manufacturing overhead $ 6.40
Fixed selling expense $ 4.90
Fixed administrative expense $ 3.90
Sales commissions $ 2.40
Variable administrative expense $ 1.90

2. Assume the cost object is the Manufacturing Department and that its total output is 27,500 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

Please work it out so I can understand it.

Thanks!

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