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    alyssa_remy1991's Avatar
    alyssa_remy1991 Posts: 1, Reputation: 1
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    #1

    Oct 24, 2012, 08:07 PM
    Need help with problem!!
    Production volume of 2,000 and 3,000 units, direct materials are $188,400 and $282,600, direct labor is $91,800 and $137,700, and the manufacturing overhead is $110,400 and $127,800. What is the best estimate of the total monthly fixed manufacturing cost?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Oct 24, 2012, 11:07 PM
    what you do here is create a table where you identify what the movement in volume has done to the cost structure, this enables you to isolate the fixed component the following article discusses a number of concepts relating to fixed and variable cost;
    http://faculty.weber.edu/rmcdermott/...03%2008.ppt#35
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