Question

Exercise 11-6 (Part Level Submission) Whispering Winds Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 4,300 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $400 and $300, respectively. 4,300 Production in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation $10,750 34,400 3,840 1,300 6,880 1,900 1,590 2,000

How do get the cost to produce 6,300 units. Please explain with work, thank you!

Answer 1

Cost to produce 6300 units = $89,060

Working

	Total (A)	Units(B)	Per unit (A/B)
Direct material	$         10,750.00	4300	$            2.50
Direct labor	$         34,400.00	4300	$            8.00
Variable Utilities cost	$           3,440.00	4300	$            0.80
Indirect labor	$           6,880.00	4300	$            1.60
Variable Maintenance cost	$           1,290.00	4300	$            0.30
Total variable costs	$         56,760.00	4300	$          13.20

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	Per unit(A)	Units(B= 6300)	Total cost (A x B)
Direct material	$                    2.50	6300	$ 15,750.00
Direct labor	$                    8.00	6300	$ 50,400.00
Variable Utilities cost	$                    0.80	6300	$    5,040.00
Indirect labor	$                    1.60	6300	$ 10,080.00
Variable Maintenance cost	$                    0.30	6300	$    1,890.00
Total variable costs	$                 13.20	6300	$ 83,160.00
Fixed cost
Fixed utility cost			$        400.00
Property taxes			$    1,300.00
Supervisor salary			$    1,900.00
Fixed maintenance cost			$        300.00
Depreciation			$    2,000.00
Total fixed cost			$    5,900.00
Total cost			$ 89,060.00