Question

Exercise 19-6 PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,165 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $316 and $211, respectively. 3,165 Production in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation $7,912 18,990 2,215 1,055 4,747 2,004 1,160 2,532 Your answer is correct. x Your answer is incorrect. Try again. Identify the above costs as variable, fixed, or mixed. Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.) Cost Variable cost per unit (Exclude variable cost for utilities and maintenance) Direct materials | Variable Variable cost per unit for utilities Direct labor | Variable Variable cost per unit for maintenance Utilities | Mixed Property taxes Fixed LINK TO TEXT Indirect labor Variable x Your answer is incorrect. Try again. Supervisory salaries Fixed Calculate the expected costs when production is 5,275 units. (Round answer to o decimal places, e.g. 1,225.) Maintenance Mixed ) Cost to produce 5,275 units Depreciation Fixed LINK TO TEXT

Answer 1

Total Cost
	Amount	Nature	Variable Portion	Fixed Portion
Direct Materials	$        7,912.0	Variable	$                7,912.0
Direct Labor	$      18,990.0	Variable	$             18,990.0
Utilities	$        2,215.0	Mixed	$                1,899.0	$                 316.0
Property taxes	$        1,055.0	Fixed		$             1,055.0
Indirect Labor	$        4,747.0	Variable	$                4,747.0
Supervisory Salaries	$        2,004.0	Fixed		$             2,004.0
Maintenance	$        1,160.0	Mixed	$                   949.0	$                 211.0
Depreciation	$        2,532.0	Fixed		$             2,532.0
Total	$      40,615.0		$             34,497.0	$             6,118.0
Cost Per Unit			$                   10.90
Total Production Units	3,165	Units
Variable cost per unit (excluding utilities and maintenance)
	$            10.00
Variable cost per unit for utilities	$              0.60
Variable cost per unit for maintenance	$              0.30
Cost to Produce 5275 Units
Units to be Produced	5,275	Units
Variable Costs	$         57,495
Fixed Cost	$            6,118
Total Cost to Produce 5275 Units	$         63,613

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Formula:

C D Fixed Portion Variable Portion =C4 =C5 =C6-F6 316 Total Cost Amount 7912 18990 2215 1055 4747 2004 1160 2532 =SUM(C4:C11) Nature Variable Variable Mixed Fixed Variable Fixed Mixed Fixed Direct Materials Direct Labor Utilities Property taxes Indirect Labor Supervisory Salaries Maintenance Depreciation Total Cost Per Unit Total Production Units -C7 =C8 =C9 211 =C10-F10 =C11 | =SUM(F4:F11) =SUM(E4:E11) =E12/C14 14 3165 Units Variable cost per unit (excluding utilities and maintenance) =(E4+E5+E8)/C14 Variable cost per unit for utilities =E6/C14 Variable cost per unit for maintenance =E10/C14 Cost to Produce 5275 Units Units to be Produced 5275 Units 30 Variable Costs Fixed Cost Total Cost to Produce 5275 Units =C27*E13 =F12 =SUM(C29:C30) 32

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G H Direct Materials Direct Labor Utilities Property taxes Indirect Labor Supervisory Salaries Maintenance Depreciation Total Cost Per Unit Total Production Units Total Cost Amount Nature $ 7,912.0 Variable $ 18,990.0 | Variable 2,215.0 Mixed $ 1,055.0 Fixed $ 4,747.0 Variable $ 2,004.0 Fixed $ 1,160.0 Mixed 2,532.0 Fixed $ 40,615.0 Variable Portion Fixed Portion $ 7,912.0 $ 18,990.0 $ 1,899.0 $ 316.0 $ 1,055.0 $ 4,747.0 $ 2,004.0 $ 949.0 $ 211.0 $ 2,532.0 $ 34,497.0$ 6,118.0 $ 10.90 3,165 Units Variable cost per unit (excluding utilities and maintenance) 17 18 $ 10.00 Variable cost per unit for utilities $ 0.60 Variable cost per unit for maintenance $ 0.30 Cost to produce 5275 Units Units to be produced 5,275 Units Variable Costs Fixed Cost Total Cost to Produce 5275 Units 57,495 6,118 63,613

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