Harris Company experiences the following cost behavior patterns each week: Fixed costs: supervisors salary $1,600; factory rent
Question:
Harris Company experiences the following cost behavior patterns each week:
Fixed costs: supervisor’s salary $1,600; factory rent $4,000
Mixed costs: utilities $2,400 + $8.40 per unit
Variable costs per unit: manufacturing labor wages $32; supplies used in production $13.60; packaging cost $3.60; warranty cost $6.40
Required:
Compute total costs to be incurred for a week with 2,000 units of activity.
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