Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following
Question:
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for
Direct materials | $ 69,000 | |
Direct labor | $ 35,000 | |
Variable manufacturing overhead | $15,000 | |
Fixed manufacturing overhead | $28,900 | |
Total manufacturing overhead | $ 43,000 | |
Variable selling expense | $ 12,000 | |
Fixed selling expense | $18,000 | |
Total selling expense | $ 30,000 | |
Variable administrative expense | $4,000 | |
Fixed administrative expense | $25,000 | |
Total administrative expense | $ 29,000 |
1. With respect to cost classifications for preparing financial statements:
- What is the total product cost?
- What is the total period cost?
2. With respect to cost classifications for assigning costs to cost objects:
- What is the total direct manufacturing cost?
- What is the total indirect manufacturing cost?
3. With respect to cost classifications for manufacturers:
- What is the total manufacturing cost?
- What is the total nonmanufacturing cost?
- What are the total conversion cost and prime cost?
4. With respect to cost classifications for predicting cost behavior:
- What is the total variable manufacturing cost?
- What is the total fixed cost for the company as a whole?
- What is the variable cost per unit produced and sold?
5. With respect to cost classifications for decision making:
a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit?