Explanation Total cost of the production: Total cost of the production includes variable and fixed cost of the production. Variable cost of the production varies with the change in the volume of the production. Fixed cost of the production does not change with the production. Calculate the total cost: Particulars Amount (A) Workings Variable costs: Ingredients used $16,100 ( $ 14 , 000 × 1.15 ) Direct labor $12,075 ( $ 10 , 500 × 1.15 ) Indirect materials and supplies $6,095 ( $ 5 , 300 × 1.15 ) Utilities $1,955 ( $ 1 , 700 × 1.15 ) Total variable costs (A) $36,225 Fixed costs: Manger’s salaries $28,450 ( $ 22 , 000 + $ 6 , 450 ) Rent $18,000 Depreciation on equipment $2,000 Other fixed costs $3,300 ( $ 3 , 000 × 1

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ISBN: 9781264022021

Author: LANEN

Publisher: MCG

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Chapter 2, Problem 49E

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Identify the unit cost and the total cost.

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Chapter 2, Problem 48E

Chapter 2, Problem 50E

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Chapter 2 Solutions

COST ACCOUNTING W/CONNECT

Ch. 2 - What is the difference in meaning between the...Ch. 2 - What is the difference between product costs and...Ch. 2 - What is the difference between outlay cost and...Ch. 2 - Prob. 4RQ Ch. 2 - Is cost-of-goods sold an expense?Ch. 2 - Is cost-of-goods a product cost or a period cost?Ch. 2 - What are the similarities between the Direct...Ch. 2 - What are the three categories of product cost in a...Ch. 2 - Prob. 9RQ Ch. 2 - Prob. 10RQ

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