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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 | 10,000 | units | 12,000 | units |
Direct materials | $614,000 | $736,800 | ||
Direct labor | $185,000 | $222,000 | ||
Manufacturing overhead | $1,008,300 | $1,042,500 |
The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.) |
$837,300
$834,300
$844,800
$840,300
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