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PROBLEM 2: Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based
PROBLEM 2: Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced. Direct materials $200 Direct manufacturing labor 40 Variable manufacturing overhead 70 Fixed manufacturing overhead 50 Total manufacturing costs $360 The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000. a. Required: What is the total cost of producing 2,000 glasses? b. What is the total cost of producing 1,600 glasses? C What is the per unit cost when producing 1,500 glasses
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