Question 2 fo 10 1000 points Dayton, Inc manufactured 15,000 unts of product las
ID: 2329687 • Letter: Q
Question
Question 2 fo 10 1000 points Dayton, Inc manufactured 15,000 unts of product last month and identned the folowing costs associated with the manufacturing activity Direct materials uned Indirect materials and supplies Power to run plant equipment 212.000 Fored costs 42.000 Plant ulities (olther than powet to run plant equipment Depreciation on plant and equipment(sraighi-ine, lime basis) Property taxes on building 198,000 Required: Unit varatie costs and tates costs are expected to reman unchanged next morn caute nent cost adme taicost 21.000 ueleprodced next mon. Bok & Resounces Reterences
Explanation / Answer
Total variable costs for 15,000 units = Direct materials used + Direct labour + Indirect materials and supplies + Power to run plant equipment
= 1,010,000 + 1,916,000 + 245,000 + 212,000
= 3,383,000
Variable cost per unit = 3,383,000 / 15,000 = 225.53
Total variable costs = 21,000 units * 225.53 per unit = 4,736,130
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Total fixed costs = Supervisory salaries + Plant utilities + Depreciation on palnt and equipment + Property taxes on building
= 942,000 + 284,000 + 142,000 + 198,000
= 1,566,000
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Total costs = Total variable costs + Total fixed costs
= 4,736,130 + 1,566,000
= 6,302,130
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Unit costs = Total costs / Number of units
= 6,302,130 / 21,000
= 300.10
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