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Llana [10]
3 years ago
5

PA5.

Business
1 answer:
Anuta_ua [19.1K]3 years ago
5 0

Answer:

              January   February   March

production     <u>   2,500     3,000     2,700 </u>

variable   44,875   53,850   48,465

fixed       <u>     14,500    14,500    14,500 </u>

total            59,375   68,350   62,965

Explanation:

indirect materials 0.5   (2 dollar per pound x .25 pound per unit)

indirect labor        16.5   ( 1 hour x 16.50 rate)

maintenance         0.75

utilities                 0.2

total variable        17.95

supervisor 1000

maintenance 9000

insurance 3000

depreciation 1500

total fixed 14500

the fixed amount will remain the same and we will solve for the variable on each month considering each units generates 17.95 dollar of variable overhead

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