Hadicke Corporation manufactures a single product. Monthly production costs incu

Question

Hadicke Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,330 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $333 and $222, respectively.

Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance.

Production in Units 3,330 Production Costs Direct materials $8,325 Direct labor 16,650 Utilities 1,998 Property taxes 1,110 Indirect labor (Variable cost) 4,995 Supervisory salaries 1,998 Maintenance 1,221 Depreciation 2,664
Hadicke Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,330 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $333 and $222, respectively. Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance.

Explanation / Answer

variable cost per unit-1.5$

variable cost per unit for utilitties-1.42$

variable cost per unit for maintanance-2.30$

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