Question

PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units.
The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively.
Production in Units.................3, 000
Production Costs
Direct materials....................$ 7,500
Direct labor.....................18, 000
Utilities........................2,100
Property taxes...................1, 000
Indirect labor.....................4,500
Supervisory salaries....................1,900
Maintenance......................1, 100
Depreciation...................2,400
Instructions
(a) Identify the above costs as variable, fixed, or mixed.
(b) Calculate the expected costs when production is 5,000 units.



$1.99
Sales48
Views1230
Comments0
  • CreatedApril 07, 2014
  • Files Included
Post your question
5000