Exercise 12-12 (Algo) Estimating costs based on behavior patterns LO 12-3

The following information provides the amount of cost incurred in March for the cost items indicated. During March, 7,800 units of the firm's single product were manufactured.

Raw materials	$ 41,700
Factory depreciation expense	40,500
Direct labor	99,200
Production supervisor's salary	6,100
Computer rental expense	4,500
Maintenance supplies used	800

Required:

How much cost would you expect to be incurred for each of these items during April when 9,700 units of the product are planned for production?

Calculate the average total cost per unit for the 7,800 units manufactured in March.

It is meaningful to use the average total cost figure in part b-1 to predict the cost in subsequent months.

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