Question
5 Mozena Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,500 units. The
Mozena Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,500 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $460 and $350, respectively.
Production in Units3,500Production Costs
Direct materials$7,945
Direct labour15,120
Utilities2,105
Property taxes1,180
Indirect labour4,725
Supervisory salaries1,900
Maintenance1,190
Depreciation2,550
(a)
Your answer is correct.
Identify the costs as variable, fixed, or mixed.
CostDirect materialsFixedVariableMixed
Direct labourVariableMixedFixed
UtilitiesVariableFixedMixed
Property taxesMixedFixedVariable
Indirect labourMixedFixedVariable
Supervisory salariesFixedMixedVariable
MaintenanceVariableMixedFixed
DepreciationMixedFixedVariable
Attempts: 1 of 3 used
(b)
Calculate the expected costs when production is 5,200 units.(Round per unit calculations to 2 decimal places, e.g. 15.26 and final answer to the nearest whole dollar, e.g. 5,275.)
Cost to produce 5,200units$
I need an explanation for part (B)
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