Please explain a step by step solution of this problem. How the direct material was calculated to get $25 and how Direct manufacturing labor ($15 5,000)/10,000was calculated. How they got the $15, 5,000 and the 10,000.

) Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:

Output units1,250phones

Machine-hours750hours

Direct manufacturing labor-hours700hours

Direct materials per unit$20

Direct manufacturing labor per hour$8

Variable manufacturing overhead costs$175,000.00

Fixed manufacturing overhead costs$126,300

Product and process design costs$143,000

Marketing and distribution costs$153,645

For long-run pricing of the cell phones, what price will most likely be used by Quick Connect?

A) $95.00

B) $135.00

C) $175.00

D) $210.00

Answer:D

Explanation:D)

Direct materials$ 25.00

Direct manufacturing labor ($15 5,000)/10,0007.50

Variable manufacturing ($175,000/10,000)17.50

Fixed manufacturing ($425,000/10,000)42.50

Product and process design costs ($400,000/10,000)40.00

Marketing and distribution ($425,000/10,000)42.50

Full cost per unit175.00

Markup (30%) 35.00

Estimated selling price$210.00

Diff: 3

Objective:2