E19-6 PCB Corporation manufactures a single product. Monthly production cost incurred in the manufacturing process are shown below for the production of 3,000 units The utilities and maintenance costs are mixed costs. The fixed portions of these costs ar $300 and $200, respectively. I Production in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation 3,000 $ 7,500 18,000 2,100 1,000 4,500 1,900 1,100 2,400 Instructions (a) Identify the above costs as variable, fixed, or mixed. (b) Calculate the expected costs when production is 5,000 units.
E19-6 PCB Corporation manufactures a single product. Monthly production cost incurred in the manufacturing process are shown below for the production of 3,000 units The utilities and maintenance costs are mixed costs. The fixed portions of these costs ar $300 and $200, respectively. I Production in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation 3,000 $ 7,500 18,000 2,100 1,000 4,500 1,900 1,100 2,400 Instructions (a) Identify the above costs as variable, fixed, or mixed. (b) Calculate the expected costs when production is 5,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fixed Costs =
Variable Costs (to make 3,000 units)
Variable Cost per Unit =
Variable Cost Portion of Mixed Cost =
Utilities
Variable Cost to make 3,000 units =
Variable Cost per Unit =
Maintenance
Variable Cost to Make 3,000 Units =
Variable Cost per Unit =
Cost to Make 5,000 Units =
=
Transcribed Image Text:E19-6 PCB Corporation manufactures a single product. Monthly production costs
incurred in the manufacturing process are shown below for the production of 3,000 units.
The utilities and maintenance costs are mixed costs. The fixed portions of these costs are
$300 and $200, respectively.
I
Production in Units
Production Costs
Direct materials
Direct labor
Utilities
Property taxes
Indirect labor
Supervisory salaries
Maintenance
Depreciation
3,000
$ 7,500
18,000
2,100
1,000
4,500
1,900
1,100
2,400
Instructions
(a) Identify the above costs as variable, fixed, or mixed.
(b) Calculate the expected costs when production is 5,000 units.
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