Exercise 19-6

PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,987 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $399 and $266, respectively.

Production in Units		3,987
Production Costs
Direct materials		$9,967
Direct labor		23,922
Utilities		2,791
Property taxes		1,329
Indirect labor		5,980
Supervisory salaries		2,525
Maintenance		1,462
Depreciation		3,190

Identify the above costs as variable, fixed, or mixed.

Cost
Direct materials		FixedMixedVariable
Direct labor		FixedMixedVariable
Utilities		FixedMixedVariable
Property taxes		FixedMixedVariable
Indirect labor		FixedMixedVariable
Supervisory salaries		FixedMixedVariable
Maintenance		FixedMixedVariable
Depreciation		FixedMixedVariable

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Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.)

Variable cost per unit (Exclude variable cost for utilities and maintenance)		$
Variable cost per unit for utilities		$
Variable cost per unit for maintenance		$

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Calculate the expected costs when production is 6,645 units. (Round answer to 0 decimal places, e.g. 1,225.)

Cost to produce 6,645 units

$

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