Andre Corporation: what is total monthly fixed manufacturing
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Andre Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.
production volume 4,000 units 5,000 units
Direct materials $99.20 per unit $99.20 per unit
Direct labor $45,50 per unit $45,50 per unit
Manufacturing overhead $94,00 per unit $77,60 per unit
The best estimate of the total monthly fixed manufacturing cost is:
A) $388,000
B) $954,800
C) $376,000
D) $328,000
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Answers a conceptual question on manufacturing cost.
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Answer is D $328,000
Manufacturing overhead at 4000 ...
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