Preparing a Cost of Goods Sold Budget Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to produce 20,000 chairs next year and expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. Required: Prepare a cost of goods sold budget for Andrews Company. Andrews Company Cost of Goods Sold Budget For the Coming Year Direct materials $ Direct labor Variable overhead Fixed overhead Total manufacturing cost $ Less: Ending inventory Cost of goods sold $

Chair unit cost:                 $    49.72

Total cost for 675 chairs:  $  33,561

Solution:

Direct Materials:                                                                       $  14.00

Direct Labour:   1.9 hours x $16 labour cost:                           $ 30.40

Overhead:

1.9 labour hours x ($ 1.6 variable rate + $ 1.20 fixed rate) = $  5.32  

                                        Total unit cost:                             $ 49.72

Cost to produce 675 chairs:

675 chairs x $ 49.72 per chair = $ 33,561‬

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.