Crane Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3800 units. The utilities and maintenance are mixed costs. The fixed portions of theses costs are 430 and 270, respectively. Production In Units 3800 Production Costs Direct Materials 7904 Direct Labor 15124 Utilities 1798 Property Taxes 1180 Indirect Labor 4484 Supervisory salaries 2100 Maintenance 1182 Depreciation 2650 Calculate the expected costs when product is 5,300 units

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Crane Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are
shown below for the production of 3800 units. The utilities and maintenance are mixed costs. The fixed portions of
theses costs are 430 and 270, respectively.
Production In Units 3800
Production Costs
Direct Materials 7904
Direct Labor 15124
Utilities 1798
Property Taxes 1180
Indirect Labor 4484
Supervisory salaries 2100
Maintenance 1182
Depreciation 2650
Calculate the expected costs when product is 5,300 units
Transcribed Image Text:Crane Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3800 units. The utilities and maintenance are mixed costs. The fixed portions of theses costs are 430 and 270, respectively. Production In Units 3800 Production Costs Direct Materials 7904 Direct Labor 15124 Utilities 1798 Property Taxes 1180 Indirect Labor 4484 Supervisory salaries 2100 Maintenance 1182 Depreciation 2650 Calculate the expected costs when product is 5,300 units
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