With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total conversion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost? b. What is the total fixed cost for the company as a whole? c. What is the variable cost per unit produced and sold? 5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit?

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1a Direct materials                        $70,000  

Direct labor                                   $35,500  

Total manufacturing overhead    $43,700

Total product cost                        $149,200

b. Total selling expense            $30,600  

Total administrative expense    $29,300

Total period cost                        $59,900

2a. Direct materials                        $70,000  

Direct labor                                     $35,500

Total direct manufacturing cost  $105,500

b. Variable manufacturing overhead   $15,400  

Fixed manufacturing overhead            $28,300

Total indirect manufacturing cost      $43,700

3a. Direct labor                                                      $35,500  

Manufacturing overhead

Variable manufacturing overhead    $15,400  

Fixed manufacturing overhead          $28,300    $43,700

Conversion cost                                                     $79,200

b. Direct materials      $70,000  

Direct labor                 $35,500

Prime cost                  $105,500

4a. Direct materials                              $70,000

Direct labor                                           $35,500

Variable manufacturing overhead      $15,400

Total variable manufacturing cost    $120,900

b. Fixed selling expense             $18,400  

Fixed administrative expense    $25,200

Total fixed cost                           $71,900

c. Direct materials                                       $70,000  

Direct labor                                                  $35,500  

Variable manufacturing overhead             $15,400  

Variable selling expense                            $12,200  

Variable administrative expense                $4,100

Total variable cost (a)                                  $137,200

Number of units produced and sold (b) = 1,000 units

Variable cost per unit produced and sold a/b= $137,200/1,000 units = $137.20

5. Incremental cost per unit produced = Total variable manufacturing cost / Number of units produced and sold = ($120,900/1000 Units) * 1 = $120.90

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