E5.6 (LO 1), AP PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing pre shown below for the production of 3,000 units. Direct materials. Direct labor Utilities Property taxes Indirect labor $7,500 18,000 2,100 1,000 4,500 1,900 1,100 2,400 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $300 and $200, respectively. Instructions Supervisory salaries Maintenance Depreciation (straight-line) a. Identify the above costs as variable, fixed, or mixed. b. Calculate the expected costs when production is 5,000 units.

E5.6 (LO 1), AP PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing pre shown below for the production of 3,000 units. Direct materials. Direct labor Utilities Property taxes Indirect labor $7,500 18,000 2,100 1,000 4,500 1,900 1,100 2,400 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $300 and $200, respectively. Instructions Supervisory salaries Maintenance Depreciation (straight-line) a. Identify the above costs as variable, fixed, or mixed. b. Calculate the expected costs when production is 5,000 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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