Question
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 $ 1,088,000 Direct labor 1,928,000 Indirect materials and supplies 243,000 Power to run plant equipment 212,000 Fixed costs: Supervisory salaries 904,000 Plant utilities (other than power to run plant equipment) 288,000 Depreciation on plant and equipment (straight-line, time basis) 142,000 Property taxes on building 190,000 Required: 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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