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Paint More LLC has organized a new division to manufacture and sell specialty paint Answer

Paint More LLC has organized a new division to manufacture and sell specialty paint Answer

Paint More LLC has organized a new division to manufacture and sell specialty paint Answer

” Paint More LLC has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below:

Manufacturing costs:
Variable costs per unit:
Direct materials $12
Variable manufacturing overhead $1
Fixed manufacturing overhead costs (total) $100,000
Selling and administrative costs:
Variable 7% of sales
Fixed (total) $31,000
Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Units produced 5,000
Units sold 4,000″

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Paint More LLC has organized a new division to manufacture and sell specialty paint