Question
eBook Creating and Using a Cost Formula Big Thumbs Company manufactures portable flash drives for computers Big Thumbs incurs monthly depreciation costs of $15,100 on
eBook Creating and Using a Cost Formula Big Thumbs Company manufactures portable flash drives for computers Big Thumbs incurs monthly depreciation costs of $15,100 on its plant equipmer materials and manufacturing overhead resources. On average, the company uses 15,000 ounces of materials to manufacture 6,000 flash drives per mon costs $3.00. In addition, manufacturing overhead resources are driven by machine hours On average, the company incurs $30,000 of variable manufact produce 6,000 flash drives per month.. In your calculations, round variable rate per flash drive to the nearest cent If required, round final answers to the nearest cent. Required: 1. Create a formula for the monthly cost of flash drives for Big Thumbs. Total cost of flash drives = Fixed cost + (Variable rate Total cost of flash drives = Show Me How 15,100+ ($ 2.50 Xx Number of flash drives) 2. If the department expects to manufacture 6,000 flash drives next month, what is the expected fixed cost (assume that 6,000 units is within the compan range)? Feedback x Number of flash drives) What is the total variable cost (assume that 6,000 units is within the company's current relevant range)? Check My Work What is the total manufacturing cost (i.e., both fixed and variable) (assume that 6,000 units is within the company's current relevant range)?
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