Question

MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor’s salary $3,000; factory rent $6,500 Mixed costs: utilities $3,500 + $10.25 per unit Variable costs per unit: manufacturing labor wages $30.00; supplies used in production $13.50; packaging cost $7.25; warranty cost $4 Required: Compute total costs to be incurred for a week with 2,950 units of activity. (Do not round intermediate calculations.)

Answer 1

Answer:

Total cost= $204,750

Explanation:

Giving the following information:

Fixed costs: supervisor’s salary $3,000; factory rent $6,500

Mixed costs: utilities $3,500 + $10.25 per unit

Variable costs per unit:

manufacturing labor wages $30.00

supplies used in production $13.50

packaging cost $7.25

warranty cost $4

Required: Compute total costs to be incurred for a week with 2,950 units of activity.

Fixed costs= 3,000 + 6,500 + 3,500= $13,000

Variable costs= (10.25 + 30 + 13.5 + 7.25 + 4)*2,950= $191,750

Total cost= $204,750