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Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production
Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. |
Production volume | 6,000 | units | 8,500 | units |
Direct materials | $341,400 | $483,650 | ||
Direct labor | $87,000 | $123,250 | ||
Manufacturing overhead | $1,005,400 | $1,040,150 |
The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.) |
$919,000
$925,000
$922,000
$929,500
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