Exercise 18-6 PCB Corporation manufactures a single product. Monthly production
ID: 2580962 • Letter: E
Question
Exercise 18-6 PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,561 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $356 and $237, respectively. Production in Units 3,561 Production Costs Direct materials $8,902 Direct labor 21,366 Utilities 2,493 Property taxes 1,187 Indirect labor 5,341 Supervisory salaries 2,255 Maintenance 1,306 Depreciation 2,849 Identify the above costs as variable, fixed, or mixed. Cost Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation LINK TO TEXT Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.) Variable cost per unit (Exclude variable cost for utilities and maintenance) $ Variable cost per unit for utilities $ Variable cost per unit for maintenance $ LINK TO TEXT Calculate the expected costs when production is 5,935 units. Cost to produce 5,935 units $
Explanation / Answer
Answer: 1.
Idnetification of cost
a. Direct matrial = variable cost
b. Direct labour = Variable Cost
c. Utilities = Mixed cost
d. Maintenance cost = mixed cost
e. Property Taxes = Fixed cost
f. Indirect labour = Fixed cost
g. Supervisor salary = Fixed cost
h. Depreciation = Fixed cost
Answer: 2.
Answer: 3.
Answer; 4
Answer; 5.
Answer: 6.
Calculation of Variable cost per unit Particular Amount Direct Material 8,902 Direct Labour 21,366 Utilities (2493-356) 2,137 Maintenance (1306-237) 1,069 Total Variable cost 33,474 No. of units 3,561 Varable cost per unit 9.40Related Questions
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