Dayton, Inc. manufactured 15,000 units of product last month and identified the
ID: 2589591 • Letter: D
Question
Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used $ 1,044,000 Direct labor 2,011,000 Indirect materials and supplies 230,000 Power to run plant equipment 212,000 Fixed costs: Supervisory salaries 937,000 Plant utilities (other than power to run plant equipment) 291,000 Depreciation on plant and equipment (straight-line, time basis) 141,000 Property taxes on building 200,000 Required: Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month. (Round "Unit costs" to 2 decimal places.)
Total variable costs Total fixed costs Total costs Unit costsExplanation / Answer
Total Variable Cost Direct material 1044000 $ Direct labour 2011000 $ Indirect material 230000 $ Indirect supplies 212000 $ 3497000 $ Total fixed cost Supervisory salaries 937000 $ Plant utilities 291000 $ Depreciation on Plant & equipement 141000 $ property taxes 200000 $ 1569000 Total cost 5066000 No of units 21000 Unit cost(5066000/21000) 241.24 $ Per unit
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