Question
Farac Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production
Farac Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
| Production Volume (units) | 4,000 | 5,000 |
| Direct Materials | $208,000 | $261,000 |
| Direct Labor | $199,200 | $149,000 |
| Manufacturing Overhead | $319,200 | $329,500 |
The best estimate of the total cost to manufacture 4,300 units is closest to:
| A. | $674,890 | |
| b. | $665,855 | |
| c. | $695,740 | |
| d. | $635,970 |
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Aviation Tax IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131696, 978-1304131690
