A furtiture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as followsCost ItemClassificationCostFactory supervinor salaryFixed$14,550 per monthLomber (direct materiala)Variable$108,000 totalProduction worker ragesVariable514.00 per hourMachine DepreciationTariable51,800 totalLease on factoryFixed59.000 per monthDuring April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of producing 2,500 units during the upcoming month is elosest to:OA $208,000OB. SI72.250OC S208,000OD S202,250OE S166,400

Labor hours required to produce 2500 units = 1800/2000*2500 = 2250 labor hours

A furniture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as follows Cost Item Classification Cost Factory supervisor salary Fixed $14,550 per month Lumber (direct materiala) Variable $108,000 total Production worker wages Variable 514.00 per hour Machine Depreciation Variable 51,800 total Lease on factory Fixed 59.000 per month During April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of prodocing 2,500 units during the upcoming mouth in closest OA S208,000 OB. S172.250 OC S208,000 OP s202.250

A furniture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as follows Cost Item Classification Cost Factory supervisor salary Fixed $14,550 per month Lumber (direct materiala) Variable $108,000 total Production worker wages Variable 514.00 per hour Machine Depreciation Variable 51,800 total Lease on factory Fixed 59.000 per month During April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of prodocing 2,500 units during the upcoming mouth in closest OA S208,000 OB. S172.250 OC S208,000 OP s202.250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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