Dayton Inc. manufactured 30,000 units of the product last month and identified the following costs associated with the manufacturing activity:

Variable costs:
direct materials used	$510,000
Direct labour	$1,120,000
Indirect materials and supplies	$120,000
Power to run plant equipment	$140,000
Fixed costs:
Supervisor Salaries	$470,000
Plant utilities (other than power to run plant equipment)	$120,000
Depreciation of plant and equipment (straight-line, time basis)	$67,500
Property taxes on construction	$98,500

Required

Variable unit costs and total fixed costs are expected to remain unchanged next month. Find the unit cost and the total cost if 36,000 units are produced next month.

Answer rating: 100% (QA)

To find the unit cost and total cost for 36000 units we need to first calculate the total cost for 3... View the full answer