E connect Chopter 2 Execses @aesson 2 isf 2. 1000 points Dayton, Inc manufacture

Question

E connect Chopter 2 Execses @aesson 2 isf 2. 1000 points Dayton, Inc manufactured 15.000 units of product last month and idenitied the following costs associated with the manutacturing acivity Dixect materials used Orect labor Indirect malerials and supplies Power te un plant equipment S 1010 000 6 000 12 000 Faed cests Pant uises (other than power to un plant equipment Propeny 1nes on building Required Univvatse costs and,ted costs "e expected to renaudarged net north Caku" re- ne unt cost and the total cost 21,000 units are produced next mon Reterences Book & Resources K L

Explanation / Answer

A .Calculation of total variable cost

Direct material used       =10,10,000/15000*21000 = $ 14,14,000

Direct labour                   =19,16,000/15000*21000=      $26,82,400

Indirect material            =245,000/15,000*21,000=        $ 3,43,000

Power charges               =212,000/15,000*21,000=          $ 2,96,800

TOTAL VARIABLE COST                                                         $ 47,36,200

TOTAL FIXED COST (Remain same)                                     $ 15,66,000

TOTAL COST                                                                             $ 63,02,200

Unit Cost (Total cost / Total unit)                                                  $300       

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