Question
Carla Vista Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,900 units.
Carla Vista Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,900 units. The company's Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $390 and $290, respectively. Calculate the expected costs to be incurred when production is 4,900 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable. Costs Incurred Production in Units 2,900 4,900 Type of cost Production Costs a. Direct Materials $ 8,961 $ Variable + b. Direct Labor C. Utilities d. Rent e. Indirect Labor 23,461 1,666 3,900 6,351 Variable Mixed Fixed Variable + f. Supervisory Salaries 2,400 Fixed g. Maintenance 1,711 Mixed h. Depreciation 3,400 Fixed
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