X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 24,000 units and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950 of plant utilities were fixed cost. 24,000 units 24,000 72,000 un its 24,000 Cost Depreciation on plant equipment Direct labor 600,000 1,800,000 Direct material 768,000 553,200 2,304,000 1,657,200 1,152,000 32,000 Factory maintenance Indirect material 384,000 Plant manager salaries Property taxes on plant 32,000 9,000 9,000 Plant utilities 288,950 864,950

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4)Based on the above, calculate the total expected cost when the company produces 60,000 units: *

A)$5,222,150

B)$6,547,150

C)$3,487,150

D)None of the above

X Company manufactures a single product. Monthly production costs incurred in
the manufacturing process are shown below for the production of 24,000 units
and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950
of plant utilities were fixed cost.
24,000
units
24,000
72,000
un its
Cost
Depreciation on plant equipment
24,000
1,800,000
Direct labor
600,000
Direct material
768,000
2,304,000
Factory maintenance
553,200
1,657,200
Indirect material
384,000
32,000
1,152,000
Plant manager salaries
Property taxes on plant
32,000
9,000
9,000
Plant utilities
288,950
864,950
Transcribed Image Text:X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 24,000 units and 72,000 units. Assume that $1,200 of the factory maintenance cost and $950 of plant utilities were fixed cost. 24,000 units 24,000 72,000 un its Cost Depreciation on plant equipment 24,000 1,800,000 Direct labor 600,000 Direct material 768,000 2,304,000 Factory maintenance 553,200 1,657,200 Indirect material 384,000 32,000 1,152,000 Plant manager salaries Property taxes on plant 32,000 9,000 9,000 Plant utilities 288,950 864,950
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