Calculate the expected manufacturing overhead cost

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Reference no: EM132583286

Zubi Pty Ltd prepared a summary showing the following expected costs for a production level of 50,000 units:

Direct labour                      $ 80,000

Fixed manufacturing overhead   60,000

Fixed selling and administration  110,000

Variable manufacturing overhead   30,000

Variable manufacturing               250,000

Variable selling                          70,000

  • Zubi Pty Ltd accounts for all manufacturing costs as inventoriable (product) costs.

Question 1: Calculate the following TOTAL costs:

a. Conversion cost

b. Product cost

c. Prime cost

d. Period cost

e. Expected manufacturing overhead cost for a production level of 60,000 units.

Reference no: EM132583286

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