The total manufacturing cost data on Miro Companys specialty paint product line are provided below. Direct materials.
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Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50.00 per gallon
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.80 per gallon
Manufacturing overhead:
Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.75 per gallon
Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,200,000 per month
General corporate sales and administrative costs . . . . . . . . . . . . . . . . . . . $5,400,000 per month
Assuming that Miro expects to produce 300,000 gallons in the next month, what appears to be the total manufacturing cost on average to produce one gallon of specialty paint?
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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