X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 24,000 units and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950 of plant utilities were fixed cost. 72,000 units 24,000 1,656,000 24,000 units Cost Depreciation on plant equipment 24,000 Direct labor 552,000 720,000 721,200 Direct material 2,160,000 Factory maintenance 2,161,200 Indirect material 336,000 1,008,000 Plant manager salaries Property taxes on plant 33,000 33,000 8,000 8,000 Plant utilities 648,950 1,944,950 Based on the above, when the company produces 24,000 units, total variable costs will be calculated as follows:
X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 24,000 units and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950 of plant utilities were fixed cost. 72,000 units 24,000 1,656,000 24,000 units Cost Depreciation on plant equipment 24,000 Direct labor 552,000 720,000 721,200 Direct material 2,160,000 Factory maintenance 2,161,200 Indirect material 336,000 1,008,000 Plant manager salaries Property taxes on plant 33,000 33,000 8,000 8,000 Plant utilities 648,950 1,944,950 Based on the above, when the company produces 24,000 units, total variable costs will be calculated as follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X Company manufactures a single product. Monthly production costs incurred in
the manufacturing process are shown below for the production of 24,000 units
and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950
of plant utilities were fixed cost.
24,000
un its
24,000
72,000
units
24,000
Cost
Depreciation on plant equipment
Direct labor
552,000
1,656,000
2,160,000
2,161,200
Direct material
720,000
Factory maintenance
721,200
Indirect material
336,000
1,008,000
Plant manager salaries
Property taxes on plant
33,000
33,000
8,000
8,000
Plant utilities
648,950
1,944,950
Based on the above, when the company produces 24,000 units, total variable
costs will be calculated as follows:
Transcribed Image Text:KA7 lujHngF3fKVBUOy vnHeZGZSoaWd)BrizigKNylA/formResponse
Based on the above, variable cost per unit was: *
$67
$124
$57
None of the above
Based on the above, calculate the total expected cost when the company
produces 60,000 units: *
$6,505,000
$7,440,000
$7,507,150
None of the above
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