Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.                   Direct materials                                       $200                 Direct manufacturing labor                      40                 Variable manufacturing overhead         70                 Fixed manufacturing overhead              50                         Total manufacturing costs           $360 The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.   Required: What is the total cost of producing 2,000 glasses? What is the total cost of producing 1,600 glasses? C     What is the per unit cost when producing 1,500 glasses?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.

 

                Direct materials                                       $200

                Direct manufacturing labor                      40

                Variable manufacturing overhead         70

                Fixed manufacturing overhead              50

                        Total manufacturing costs           $360

The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.

 

Required:

  1. What is the total cost of producing 2,000 glasses?
  2. What is the total cost of producing 1,600 glasses?

C     What is the per unit cost when producing 1,500 glasses?

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