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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?

Respuesta :

Zviko

Answer:

$19,928

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

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