Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Big Thumbs Company manufactures portable flash drives for computers. Elig Thumbs incurs monthly depreciation costs of $15,300 on its piant equipment. Also, each drive requires
Big Thumbs Company manufactures portable flash drives for computers. Elig Thumbs incurs monthly depreciation costs of $15,300 on its piant equipment. Also, each drive requires materials and manufacturing overhead resources. On average, the company uses 8,850 ounces of materials to manufacture 5,900 fiash drives per month. Each ounce of material costs $3.00, In addition, manufacturing overhead resources are driven by machine hours, On average, the comporny incurs $41,300 of variable. manufacturing overhead resources to produce 5,900 fiash drives per month. In your calculations, round variable rate per flash drive to the nearest cent. If required, round final answers to the nearest cent. Required: 1. Create a formula for the monthly cost of flash drives for Big Thumbs. \begin{tabular}{ll} Total cost of fash drives = & +1 \\ Total cost of flash drives =$ & +($ Number of flash drives ) \end{tabular} 2. If the department expects to manufacture 6,000 flash drives next month, what is the expected foxed cost (assume that 6,000 units is within the company's current. relevant range)? 1 What is the total variable cost (assume that 6,000 units is within the company's current relevant range)? s What is the total manufacturing cost (0.e., both fred and variabie) (assume that 6,000 units is within the company's current reievant range)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started