Question - Expected manufacturing costs for Robert's Widgits are as follows:
Variable Costs Fixed Costs per month
Direct Materials $4.00/unit Supervisory salaries $100,000
Direct Labor $2.00/unit Factory overhead $350,000
Variable Overhead $1.50/unit
Estimate the manufacturing costs if Robert's produces 100,000 widgits in January.
Estimate the manufacturing costs if Robert's produces 120,000 widgits in February.