Question
Help! How do I calculate cost to produce 7,000 units? I believe it is- total fixed cost + (variable cost per unit x 7,000 units)
Help! How do I calculate cost to produce 7,000 units?
I believe it is- total fixed cost + (variable cost per unit x 7,000 units) I am not getting the correct answer. What is used to find the sum of total fixed costs?
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of4,200units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $420and $280, respectively.
Production in Units4,200Production Costs
Direct materials $10,500
Direct labor 25,200
Utilities 2,940
Property taxes1,400
Indirect labor 6,300
Supervisory salaries 2,660
Maintenance1,540
Depreciation 3,360
(b1)
Your answer is correct.
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) $10
Variable cost per unit for utilities $.6
Variable cost per unit for maintenance $.3
(b2)
Your answer is incorrect.Try again.
Calculate the expected costs when production is7,000units.
Cost to produce7,000units$
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