Truman Inc. has provided the following production and total cost data for two levels of monthly...

 

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Truman Inc. has provided the following production and total cost data for two levels of monthly production volume. Production volume 7,000 units 10,000 units Direct materials $70,000 $100,000 Direct labor $56,000 $80,000 Depreciation on factory equipment $10,000 $10,000 Depreciation on office equipment $5,000 $5,000 Utilities for factory $11,600 $12,500 The best estimate of the total monthly fixed manufacturing cost when 8,000 units are produced is: Truman Inc. has provided the following production and total cost data for two levels of monthly production volume. Production volume 7,000 units 10,000 units Direct materials $70,000 $100,000 Direct labor $56,000 $80,000 Depreciation on factory equipment $10,000 $10,000 Depreciation on office equipment $5,000 $5,000 Utilities for factory $11,600 $12,500 The best estimate of the total monthly fixed manufacturing cost when 8,000 units are produced is:

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To estimate the total monthly fixed manufacturing cost when 8000 units are produced we can use the h... View the full answer