ENZ Manufacturing Company manufactures water filters at a selling price per unit of $60. The following...
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ENZ Manufacturing Company manufactures water filters at a selling price per unit of $60. The following information is available regarding costs at 7,000 units and 10,000 units of monthly production for 2021: Production volume Factory supervisors' salaries Direct labour Indirect labour and materials Depreciation on machinery Electricity Direct materials Rental of factory Total 7,000 $12,000 56,000 21,000 10,000 15,000 70,000 16,000 $200,000 10,000 $12,000 80,000 30,000 10,000 21,000 100,000 16,000 $269,000 Required: (a)(i) Classify the cost (variable, fixed, or mixed) by writing the name of each cost under one of the following headings: Variable Cost Fixed Cost Mixed Cost (a)(ii)Explain the cost behaviour of the costs classified under each of the above respective headings. (b) Develop a monthly cost formula for each of the mixed cost identified in part (a) above. Show all workings. (c) Calculate the expected total costs for the first quarter of 2022 if ENZ forecasts to produce a total production volume of 28,000 units. Some people answer is 76100 Some people answer is 68300 ENZ Manufacturing Company manufactures water filters at a selling price per unit of $60. The following information is available regarding costs at 7,000 units and 10,000 units of monthly production for 2021: Production volume Factory supervisors' salaries Direct labour Indirect labour and materials Depreciation on machinery Electricity Direct materials Rental of factory Total 7,000 $12,000 56,000 21,000 10,000 15,000 70,000 16,000 $200,000 10,000 $12,000 80,000 30,000 10,000 21,000 100,000 16,000 $269,000 Required: (a)(i) Classify the cost (variable, fixed, or mixed) by writing the name of each cost under one of the following headings: Variable Cost Fixed Cost Mixed Cost (a)(ii)Explain the cost behaviour of the costs classified under each of the above respective headings. (b) Develop a monthly cost formula for each of the mixed cost identified in part (a) above. Show all workings. (c) Calculate the expected total costs for the first quarter of 2022 if ENZ forecasts to produce a total production volume of 28,000 units. Some people answer is 76100 Some people answer is 68300
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Step 13 ai Classification of costs Variable costs 1 Direct labour 2 Direct materials 3 Indirect labour and materials Fixed costs 1 Factory supervisors ... View the full answer
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