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United Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and
United Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks.
United currently produces 210 vehicles per month. 3. relate to your graphs? E What is the total manufa produced each month? the manufacturing cost Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per mor The variable cost per vehicle is $ 2,300 Determine the fixed manufacturing cost per month at each of the following capacity levels. 0-500 tires per month $ 402,000 501-1,000 tires per month more than 1,000 tires per month $ 457,000 $ 602,000 Data Table - Plant management costs, $1,596,000 per year Cost of leasing equipment, $2,988,000 per year Workers' wages, $500 per Surfer vehicle produced Direct materials costs: Steel, $1,200 per Surfer; Tires, $120 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $ 20,000 501-1,000 tires $ 75,000 more than 1,000 tires $ 220,000 Requirement 3. What is the total manufacturing cost of each vehicle if 75 vehicles are produced each month? 200 vehicles? How do you explain the difference in the manufacturing cost per unit? Calculate the manufacturing cost of each vehicle (a) if 75 vehicles are produced each month and (b) if 200 vehicles are produced each month. (Round your answers to the nearest cent.) Vehicles Fixed unit Variable unit Total unit per month cost per vehicle cost per vehicle cost per vehicle 75 (a) (b) 200
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