Muscat Company's total sales are $130,000. The company's direct material cost is $57,000, which represents 40% of its total prime cost. Its total manufacturing overhead costs is $45,000. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 3% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. What is the total manufacturing cost? Select one: a. $187,500 b. $73,000 c. $197,500 d. None of the answers given e. $120,000 x f. $124,800

Muscat Company's total sales are $130,000. The company's direct material cost is $57,000, which represents 40% of its total prime cost. Its total manufacturing overhead costs is $45,000. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 3% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. What is the total manufacturing cost? Select one: a. $187,500 b. $73,000 c. $197,500 d. None of the answers given e. $120,000 x f. $124,800

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 14SP

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