Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wildhorse Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 3,100 units. The companys
Wildhorse Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 3,100 units. The companys Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $410 and $310, respectively. Calculate the expected costs to be incurred when production is 5,100 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.
Costs Incurred | ||||||||||
Production in Units | 3,100 | 5,100 | Type of cost | |||||||
Production Costs | ||||||||||
a. | Direct Materials | $ 9,641 | $enter a dollar amount | select a type of cost MixedVariableFixed | ||||||
b. | Direct Labor | 25,141 | enter a dollar amount | select a type of cost VariableMixedFixed | ||||||
c. | Utilities | 1,836 | enter a dollar amount | select a type of cost MixedVariableFixed | ||||||
d. | Rent | 4,100 | enter a dollar amount | select a type of cost VariableMixedFixed | ||||||
e. | Indirect Labor | 6,851 | enter a dollar amount | select a type of cost VariableMixedFixed | ||||||
f. | Supervisory Salaries | 2,600 | enter a dollar amount | select a type of cost VariableMixedFixed | ||||||
g. | Maintenance | 1,891 | enter a dollar amount | select a type of cost MixedVariableFixed | ||||||
h. | Depreciation | 3,600 | enter a dollar amount | select a type of cost VariableFixedMixed |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started