Question

You run a small business that manufactures park benches. A single high-grade

bench you offer is made from the following direct costs.
1. Lumber - Oak
$7.50 5. Direct labor
$10.60
2. Concrete
$1.56 6. Delivery cost
$ 6.20
3. Metal screws
$ .75 7. Advertising
$ 1.32
4. Wood stain
$.79
What are the total direct costs for manufacturing 940 high-grade benches?

Answer 1

$19,928

Step-by-step explanation:

Direct Costs are costs that vary directly with the number of units produced.

Calculation of Total total direct costs for manufacturing

Consider only direct manufacturing costs per unit

1. Lumber - Oak $7.50

2. Concrete $1.56

3. Metal screws $ 0.75

4. Wood stain $0.79

5. Direct labor $10.60

Total $21.20

Therefore,

Total Cost = Unit Cost x Units manufactured

= $21.20 x 940

= $19,928

Conclusion

The total direct costs for manufacturing 940 high-grade benches is $19,928