Question: Mallory Lapp LLC provided the following average cost data for two levels of monthly production volume for the just ended Quarter, for its single product.

Mallory Lapp LLC provided the following average cost data for two levels of monthly production volume for the just ended Quarter, for its single product.

Production Volume

30,000

54,000

Direct Materials

50,000

110,000

Direct Labor

240,000

528,000

Manufacturing Overhead

270,000

450,000

What is the best estimate of the variable manufacturing cost per unit?

What is the total fixed element in the MOH costs?

Determine unit product Cost: for both activity levels

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