Final answer:
The total cost of producing 15,500 units of the product by Ramort company is $345,662.10, which includes the total variable costs of $345,650 and the fixed overhead cost of $12.10.
Step-by-step explanation:
To calculate the total cost of producing 15,500 units of the product for Ramort company, we need to add together the variable costs per unit and the fixed costs. The variable costs include direct materials, direct labor, and variable overheads. Fixed costs are given on a per year basis, which may not apply if the 15,500 units aren't produced in one year. Assuming the fixed cost is applicable for the production of 15,500 units in this time frame, here's how you'd calculate it:
- Direct materials cost per unit: $9.10
- Direct labor cost per unit: $11.10
- Variable overhead cost per unit: $2.10
Total variable cost per unit = Direct materials cost per unit + Direct labor cost per unit + Variable overhead cost per unit.
Total variable cost per unit = $9.10 + $11.10 + $2.10 = $22.30.
To find the total variable costs for 15,500 units, multiply the total variable cost per unit by the number of units:
Total variable costs for 15,500 units = Total variable cost per unit * 15,500 units.
Total variable costs for 15,500 units = $22.30 * 15,500 = $345,650.
Then add the fixed overhead cost to get the total production cost:
Total production cost = Total variable costs for 15,500 units + Fixed overhead cost.
Total production cost = $345,650 + $12.10 (since it's not multiplied by the number of units) = $345,662.10.
Therefore, the total cost of producing 15,500 units of the product is $345,662.10.