Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 20,000 units at a price of $340 each. Produc
t costs include: Direct materials $71.00 Direct labor $41.00 Variable overhead $10.00 Total fixed factory overhead $619,950 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $93,600.
1 answer:
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Answer:
$8,780
Explanation:
According to the planning budget, the monthly operating cost for the vehicle is:
Where 'd' is the number of snow-days.
If the company has planned for 16 snow days, then the operating cost in the planning budget would be:
The planning budget for December would be $8,780