Precision Blades Inc. has total manufacturing costs of $225,000 when 18,000 packages of razors are produced. Of this amount, total variable costs are $45,000. What are the total production costs when 24,000 packages of razors are produced?

Precision Blades Inc. has total manufacturing costs of $225,000 when 18,000 packages of razors are produced. Of this amount, total variable costs are $45,000. What are the total production costs when 24,000 packages of razors are produced?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Question

Provide correct solution with explanation of the financial accounting

Precision Blades Inc. has total manufacturing costs of
$225,000 when 18,000 packages of razors are produced. Of
this amount, total variable costs are $45,000. What are the
total production costs when 24,000 packages of razors are
produced?

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