X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 500 units and 1,000 units. Assume that $1,000 of the factory maintenance cost was fixed cost. COSTS 500 units 1,000 units Depreciation of plant cquipment $6,000 $6,000 Direct labor 2,500 5,000 Direct material 5,000 10,000 Factory maintenance 2,500 4,000 Indirect labor 1,000 2,000 Plant manager salaries 20,000 20,000 Property taxes on plant 6,500 6,500 Based on the above, when the company produces 500 units, total variable costs will be calculated as follows: * 2,500 + 5,000 + 1,000 2,500 + 5,000 + 1,000 + 1,500 2,500 + 5,000 + 1,000 + 1,000 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 500 units and 1,000 units. Assume that $1,000 of the factory maintenance cost was fixed cost. COSTS 500 units 1,000 units Depreciation of plant cquipment $6,000 $6,000 Direct labor 2,500 5,000 Direct material 5,000 10,000 Factory maintenance 2,500 4,000 Indirect labor 1,000 2,000 Plant manager salaries 20,000 20,000 Property taxes on plant 6,500 6,500 Based on the above, when the company produces 500 units, total variable costs will be calculated as follows: * 2,500 + 5,000 + 1,000 2,500 + 5,000 + 1,000 + 1,500 2,500 + 5,000 + 1,000 + 1,000 None of the above

Name: 11:58* ll 95% iNone of the aboveBased on the above, the total of fixe
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Description: 11:58* ll 95% iNone of the aboveBased on the above, the total of fixed costsis: *$32,500$33,500$35,000None of the aboveBased on the above, the total cost whenthe company produces 1,500 units is: *$59,000$62,500$63,500None of the abovePage 7 of 10Вac

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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subject : Accounting
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 51,000 units per month is as follows: Per Unit Direct materials $ 48.10 Direct labor $ 9.20 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 19.50 Variable selling & administrative expense $ 4.00 Fixed selling & administrative expense $ 19.00 The normal selling price of the product is $108.10 per unit. An order has been received from an overseas customer for 3,100 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.30 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on…
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