Question

Exercise 11-6 (Part Level Submission) Flint Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 4,100 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively. Production in Units 4,100 Production Costs Direct materials $10,660 Direct labor 32,800 Utilities 3,580 Property taxes 1,100 Indirect labor 6,970 Supervisory salaries 1,900 Maintenance 1,430 Depreciation 3,300

(a) Your answer is correct. Identify the above costs as variable, fixed, or mixed. Cost Direct materials FixedMixedVariable Direct labor FixedMixedVariable Utilities FixedMixedVariable Property taxes FixedMixedVariable Indirect labor FixedMixedVariable Supervisory salaries FixedMixedVariable Maintenance FixedMixedVariable Depreciation FixedMixedVariable Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Attempts: 1 of 3 used

(b) Calculate the expected costs when production is 6,100 units. Cost to produce 6,100 units $ Click if you would like to Show Work for this question:

Answer 1

Solution a:

Direct materials - Variable

Direct labor - Variable

Utilities - Mixed

Property taxes - Fixed

Indirect labor - Variable

Supervisory salaries - fixed

Maintenance - Mixed

Depreciation - fixed

Solution b:

Variable cost per unit = ($10,660 + $32,800 + $3,280 + $6,970 + $1,230) /4100 = $13.40 per unit

Total fixed costs = $300 + $1,100 + $1,900 + $200 + $3,300 = $6,800

Expected cost at 6100 units = (6100*$13.40) + $6,800 = $88,540