Question
plumview printers makes stationery sets of 100 percent rag content edged in 24 karat gold. in an average month, the firm produces 80,000 boxes of
plumview printers makes stationery sets of 100 percent rag content edged in 24 karat gold. in an average month, the firm produces 80,000 boxes of stationery; each box contanis 100 pages of stationery and 80 envelops. Production costs are incurred for paper, ink, glue, and boxes. the company manufactures this product in batches of 500 boxes of a specific stationery design. the following data have been extracted from the companies accounting records for June 2010: cost of paper for each batch $10,000 cost of ink and glue for each batch 1,000 cost of 1,000 gold boxes for each batch 32,000 direct labor for producing each batch 16,000 cost of designing each batch 20,000 Overhead charges total $408,000 per month and are considered fully fixed for purposes of cost estimation. a. what is the cost per box of stationery based on average production volume?
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