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NVIDIA Corporation uses batch costing for its graphics card production. In January 2034, the company produces 5 batches of graphics cards with the following costs:
NVIDIA Corporation uses batch costing for its graphics card production. In January 2034, the company produces 5 batches of graphics cards with the following costs:
- Batch 1: Direct materials $1,000,000, Direct labor $500,000, Factory overhead $400,000
- Batch 2: Direct materials $1,200,000, Direct labor $600,000, Factory overhead $450,000
- Batch 3: Direct materials $1,100,000, Direct labor $550,000, Factory overhead $425,000
- Batch 4: Direct materials $1,300,000, Direct labor $650,000, Factory overhead $475,000
- Batch 5: Direct materials $1,400,000, Direct labor $700,000, Factory overhead $500,000
Required:
- Classify each cost as variable or fixed.
- Calculate the total variable costs for each batch.
- Determine the total fixed costs for all batches produced.
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