Answer:
The overall fixed monthly manufacturing expense totals $328,000.
Explanation:
For a production of 4000 units, direct material costs amount to $99.2 per unit, direct labor costs stand at $45.5 per unit, and manufacturing overhead costs equal $94.
For a production of 5000 units, direct materials remain at $99.2 per unit, direct labor is $45.5, and manufacturing overhead costs adjust to $77.6.
Total overhead for 4,000 units
=
= $376,000
Total overhead for 5,000 units
=
= $388,000
The variable cost per unit
=
= $12 per unit
Fixed costs
= Total expenses - Total variable costs
=
= $328,000