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:
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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