Question
X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing process:
X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing process:
Direct material quantity | 1.2 pounds per unit of Product A |
Direct material price | $22.90 per pound |
Direct labor time | 1.7 hours per unit of Product A |
Direct labor wage rate | $16.20 per hour |
The budgeted monthly overhead cost function is $3,400+$2.05X, where X is the number of units produced. If X Company expects to produce 900 units of Product A in December, what are budgeted total manufacturing costs for December?
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