X Company manufactures a single product. Monthly production costs incurred inthe manufacturing process are shown below for the production of 24,000 unitsand 72,000 units. Assume that $1,200 of the factory maintenance cost and $950of plant utilities were fixed cost.24,000un its24,00072,000units24,000CostDepreciation on plant equipmentDirect labor552,0001,656,000Direct material720,0002,160,0002,161,2001,008,00033,000Factory maintenan ce721,200Indirect material336,00033,000Plant manager salariesProperty taxes on plantPlant utilities8,0008,000648,9501,944,950Based on the above, when the company produces 24,000 units, total variablecosts will be calculated as follows: *552,000 + 720,000+ (721,200-950) + 336,000 + (648,950-1,200)552,000 + 720,000+ 336,000552,000 + 720,000+ (721,200-1,200) + 336,000 + (648,950-950)O None of the aboveacerF5F6F8F9F10F11DIOF12PrtSc Based on the above, total fixed costs was:$67,150$65,000O $66,200None of the aboveBased on the above, variable cost per unit was:

Name: X Company manufactures a single product. Monthly production costs inc
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Description: X Company manufactures a single product. Monthly production costs incurred inthe manufacturing process are shown below for the production of 24,000 unitsand 72,000 units. Assume that $1,200 of the factory maintenance cost and $950of plant utilities

Solution... (1). Total variable cost at 24,000 units Direct labor + Direct material + Factory…

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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 units 24,000 Cost Depreciation on plant equipment Direct labor 552,000 1,656,000 Direct material 720,000 2,160,000 Factory maintenan ce 721,200 2,161,200 Indirect material 336,000 1,008,000 Plant manager salaries Property taxes on plant 33,000 33,000 8,000 1,944,950 8,000 Plant utilities 648,950 Based on the above, when the company produces 24,000 units, total variable costs will be calculated as follows: * 552,000 + 720,000+ (721,200-950) + 336,000 + (648,950-1,200) 552,000 + 720,000+ 336,000 552,000 + 720,000+ (721,200-1,200) + 336,000 + (648,950-950) None of the above Besed acer F5 DIO F6 F7 F8 F9 MX F10 F11 F12 PrtSc

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 units 24,000 Cost Depreciation on plant equipment Direct labor 552,000 1,656,000 Direct material 720,000 2,160,000 Factory maintenan ce 721,200 2,161,200 Indirect material 336,000 1,008,000 Plant manager salaries Property taxes on plant 33,000 33,000 8,000 1,944,950 8,000 Plant utilities 648,950 Based on the above, when the company produces 24,000 units, total variable costs will be calculated as follows: * 552,000 + 720,000+ (721,200-950) + 336,000 + (648,950-1,200) 552,000 + 720,000+ 336,000 552,000 + 720,000+ (721,200-1,200) + 336,000 + (648,950-950) None of the above Besed acer F5 DIO F6 F7 F8 F9 MX F10 F11 F12 PrtSc

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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