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week 5 wiley.

Question 4

Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials		$14,118
Direct labor		$25,745
Fixed manufacturing overhead		$9,746
Variable manufacturing overhead		$31,617
Selling costs		$21,172

What are the total product costs for the company under variable costing?

Total product costs

Question 5

Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

Variable Cost per Unit
Direct materials		$7.88
Direct labor		$2.57
Variable manufacturing overhead		$6.04
Variable selling and administrative expenses		$4.10

Fixed Costs per Year
Fixed manufacturing overhead		$247,086
Fixed selling and administrative expenses		$252,105

Polk Company sells the fishing lures for $26.25. During 2012, the company sold 80,600 lures and produced 95,400 lures.

(a)

Question 7

Gundy Company expects to produce 1,225,440 units of Product XX in 2012. Monthly production is expected to range from 74,830 to 110,270 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 17,720 unit increments. (List variable costs before fixed costs.)