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The best estimate of the total monthly fixed manufacturing cost, Accounting 203 homework (please show the steps of solving problem)
Subject
Business Finance
Question Description
1. A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,600 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and twenty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
Product
Period
A$3,600
$0
B$2,880
$720
C$1,920
$480
D$960
$240
2. At an activity level of 8,600 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $734,440 and its total fixed production engineering cost is $154,000. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,800 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)
A$102.90
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