Question

Assume the following information:

Direct materials $ 70,000
Direct labor $ 37,000
Variable manufacturing overhead $ 12,000
Fixed manufacturing overhead $ 25,000
Total manufacturing overhead $ 37,000
Variable selling expense $ 15,000
Fixed selling expense 20,000
Total selling expense $ 35,000
Variable administrative expense $ 8,000
Fixed administrative expense $12,000
Total administrative expense $ 20,000
What is the total product cost?

Answer 1

Total product cost= $181,000

Step-by-step explanation:

The product cost is the sum of the direct material, direct labor, and manufacturing overhead:

Direct materials $ 70,000

Direct labor $ 37,000

Variable manufacturing overhead $ 12,000

Fixed manufacturing overhead $ 25,000

Total manufacturing overhead $ 37,000

Total product cost= $181,000