Q1) Accounting data on DuPont Kevlar product line to find out total manufacturing cost to make a pound of Kevlar. Similar data on DuPont Teflon product line are given below.
Spreadsheet |
Direct materials |
$60.00 per gallon |
Direct labor |
$1.80 per gallon |
Manufacturing overhead: |
Variable |
$3.20 per gallon |
Fixed |
$3,200,000 per month |
General corporate sales and administrative costs |
$6,400,000 per month |
Costing procedure was used with, and suppose that DuPont expects to make 100,000 gallons in next month,
What seems to be total manufacturing cost per gallon of Teflon?