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Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity. Variable costs: Direct materials used $
Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity.
Variable costs: | ||
Direct materials used | $ | 1,031,000 |
Direct labor | 1,934,000 | |
Indirect materials and supplies | 245,000 | |
Power to run plant equipment | 211,000 | |
Fixed costs: | ||
Supervisory salaries | 901,000 | |
Plant utilities (other than power to run plant equipment) | 285,000 | |
Depreciation on plant and equipment (straight-line, time basis) | 141,000 | |
Property taxes on building | 191,000 |
Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month.
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