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 $ 1,003,000 Direct labor 1,969,000 Indirect materials and supplies 240,000 Power to run plant equipment 215,000 Fixed costs: Supervisory salaries 911,000 Plant utilities (other than power to run plant equipment) 282,000 Depreciation on plant and equipment (straight-line, time basis) 141,000 Property taxes on building 194,000 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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