PCB Corporation manufactures a single product. Monthly production costs incurred
ID: 2553156 • Letter: P
Question
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,285 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $328 and $219, respectively.
Production in Units
3,285
Production Costs
2,628
Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.)
Production in Units
3,285
Production Costs
Direct materials $8,212 Direct labor 19,710 Utilities 2,299 Property taxes 1,095 Indirect labor 4,927 Supervisory salaries 2,080 Maintenance 1,204 Depreciation2,628
Explanation / Answer
Variable cost per unit=(8212+19710+4927)/3285= $10 Variable cost per unit for utilities =(2299-328)/3285= $0.6 Variable cost per unit for maintenance =(1204-219)/3285= $0.30
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