Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single prod

Question

Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 4,236 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $424 and $282, respectively. 4,236 Production in Units Production Costs Direct materials Direct labor $10,590 25,416 2,965 1,412 6,354 2,683 1,553 3,389 Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation

Explanation / Answer

Total Variable cost at 4236 units Direct material 10590 Direct labour 25416 Indirect labour 6354 Total Variable cost at 4236 units 42360 Divide: Number of units 4236 Variable cost per unit 10 Total cost of utilities 2965 Less: Fixed portion 424 Variable portion of utility cost 2541 Divide: Number of Units 4236 Variable utility cost per unit 0.6 Total cost of maintenance 1553 Less: Fixed portion 282 variable portion of Maint. Cost 1271 Divide: Number of units 4236 Variable maintenance cost per unit 0.3 variable cost per unit 10 variable utility cost per unit 0.6 Variable maintenance cost per unit 0.3

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