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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 | 7,700 | units | 9,000 | units |
Direct materials | $472,010 | $551,700 | ||
Direct labor | $157,850 | $184,500 | ||
Manufacturing overhead | $1,005,700 | $1,030,530 |
The best estimate of the total cost to manufacture 8,000 units is closest to: (Do not round intermediate calculations.) |
$1,712,450
$1,642,520
$1,665,830
$1,572,590
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