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Dayton, Inc. manufactured 30,000 units of product last month and identified the following costs associated with the manufacturing activity. Variable costs: Direct materials used
Dayton, Inc. manufactured 30,000 units of product last month and identified the following costs associated with the manufacturing activity. Variable costs: Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment Fixed costs: $ 510,000 1,120,000 120,000 140,000 470,000 Depreciation on plant and equipment (straight-line, tine basis) Property taxes on building 120,000 67,500 98,500 Supervisory salaries Plant utilities (other than power to run plant equipment) Required: Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 36,000 units are produced next month. Answer is complete but not entirely correct. Total variable costs $ 1,890,000 6 Total fixed costs $ 756,000 Total costs $ 3,024,000 Unit costs $ 84
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