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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 cost to manufacture 10,800 units is closest to
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