Atta Baby Company produces infant seats for use in automobiles. During a recent fiscal period, the company incurred the following cost:

The company produced and sold 3,190 seats at \(\$ 50\) per seat. Each inspector can inspect up to 2,000 seats during a period. Half of the utilities costs are associated with manufacturing and vary with production. Manufacturing employees are paid for hours worked.

\section*{Required}
A. Classify each cost as variable, fixed, semivariable, or step.
B. For variable costs, including the variable portion of semivariable costs, calculate the unit cost of each seat produced and sold. Round unit costs to the nearest cent.
C. If the company had produced and sold 3,500 seats, what would you expect the total costs to have been? How much profit would the company have earned?

Transcribed Image Text:

Metal for frames Foam filler $40,000 25,000 Plastic seat covering 15,000 Manufacturing wages 23,000 Inspector salaries 7,000 Administrative salaries 12,000 Depreciation 4,000 Utilities 1,600