Question
The following information provides the amount of cost incurred in August for the cost items indicated. During August, 7,600 units of the firm's single product
The following information provides the amount of cost incurred in August for the cost items indicated. During August, 7,600 units of the firm's single product were manufactured.
Raw materials | $ | 41,900 | |
Factory depreciation expense | 40,900 | ||
Direct labor | 99,300 | ||
Production supervisor's salary | 6,300 | ||
Computer rental expense | 4,400 | ||
Maintenance supplies used | 700 | ||
Required:
a. How much cost would you expect to be incurred for each of these items during September when 9,400 units of the product are planned for production? (Do not round intermediate calculations.)
Raw materials
Factory depreciation expense
Direct labor
Production supervisor's salary
Computer rental expense
Maintenance supplies used
Total cost
b-1. Calculate the average total cost per unit for the 7,600 units manufactured in August. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-2. It is meaningful to use the average total cost figure in part b-1 to predict the cost in subsequent months.
True | |
False |
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