Question

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows Average Cost per Unit $5.20 $3.75 2 ) 04.0437 Direct materials Direct labor Variable manufacturing overhead $1.65 Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $2.6e $e.se 0.40 $1.50 $0.50

Answer 1

$53, 700

Step-by-step explanation:

The question is not complete:

The completion is here:

6000 Units were produced and determine the total amount of direct manufacturing cost incurred.

Step 1: Calculate the Direct Manufacturing Cost

Direct manufacturing cost is the cost of those input raw materials that are directly related to the product as well as the units being produced.

Direct Manufacturing Cost = (The Direct Material/ Unit + The Direct Labour/ unit) x Units Produced

= ($5,20 + $3.75) x 6000 units

= $8.95 x 6000 units

= $53, 700

Therefore, the direct manufacturing cost is $53, 700