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Sunland Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,700 units. Direct materials
Sunland Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,700 units. Direct materials $7,860 Direct labor 27,384 Utilities 3,089 Property taxes 1,048 Indirect labor 4,716 Supervisory salaries 1,991 Maintenance 1,505 Depreciation (straight-line) 2,515 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $314 and $210, respectively. Calculate unit variable cost, unit variable cost for utilities and unit variable cost for maintenance. Exclude mixed costs in the calculation for unit variable cost. (Round answers to 2 decimal places e.g. 2.25.) 0.75 Variable cost per unit (exclude variable cost for utilities and maintenance) $ 10.80 Variable cost per unit for utilities Variable cost per unit for maintenance +A +A $ 0.35 Calculate the expected costs when production is 5,240 units. Cost to produce 5,240 units $
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