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Question

://edugen.wileyplus.com/edugen/student/mainfr.uni wileyPLUSe HyWleyPLUSIHel I Contact Us I Los Weygandt, Managerial Accounting, 7e MANAGEMENT ACCOUNTING (ACCT 21 Assignment Gradebook ORION Downloadable eTextbook CALCULATOR FULL SCREX" PRINTER VERSION .BACKE Exercise 5 6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,165 units. The utilities and maintenance costs are miced costs. The fined portions of these coots are s316 and $211, respectively 1.163 Production.in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation $7.912 18,990 2,215 1,055 4,747 2,004 1160 2.532 (a) Your answer is correct.

Explanation / Answer

b2) Calculation of expected costs when production is 5,275 units (Amount in $)

Cost to produce = Total Variable costs+Total Fixed costs

Total Variable costs per unit = $10.00+$0.60+$0.30 = $10.90

Total Variable costs = Variable costs per unit*Units produced

= $10.90*$5,275 units = $57,497.50

Fixed Costs = Utilities+Property Taxes+Supervisory Salaries+Maintenance+Depreciation

= $316+$1,005+$2,004+$211+$2,532 = $6,068

Cost to produce = $57,497.50+$6,068 = $63,565.50

Therefore cost to produce 5,275 units is $63,565.50

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