Doran Technologies produces a single product. Expected manufacturing costs are as follows: Variable costs Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead $0.95 per unit Fixed costs per month Depreciation $ 6,000 Supervisory salaries 13,500 Other fixed costs 3,850 Required: Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month. At 25,000 units At 30,000 units At 35,000 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Doran Technologies produces a single product. Expected manufacturing costs are as follows:
Variable costs
Direct materials
$4.00 per unit
Direct labor
$1.20 per unit
Manufacturing overhead
$0.95 per unit
Fixed costs per month
Depreciation
$ 6,000
Supervisory salaries
13,500
Other fixed costs
3,850
Required:
Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month.
At 25,000 units
At 30,000 units
At 35,000 units
Transcribed Image Text:Doran Technologies produces a single product. Expected manufacturing costs are as follows: Variable costs Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead $0.95 per unit Fixed costs per month Depreciation $ 6,000 Supervisory salaries 13,500 Other fixed costs 3,850 Required: Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month. At 25,000 units At 30,000 units At 35,000 units
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