Ask Question
25 March, 02:32

MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $3,000; factory rent $6,500 Mixed costs: utilities $3,500 + $10.25 per unit Variable costs per unit: manufacturing labor wages $30.00; supplies used in production $13.50; packaging cost $7.25; warranty cost $4 Required: Compute total costs to be incurred for a week with 2,950 units of activity. (Do not round intermediate calculations.)

+2
Answers (1)
  1. 25 March, 04:56
    0
    Total cost = $204,750

    Explanation:

    Giving the following information:

    Fixed costs: supervisor's salary $3,000; factory rent $6,500

    Mixed costs: utilities $3,500 + $10.25 per unit

    Variable costs per unit:

    manufacturing labor wages $30.00

    supplies used in production $13.50

    packaging cost $7.25

    warranty cost $4

    Required: Compute total costs to be incurred for a week with 2,950 units of activity.

    Fixed costs = 3,000 + 6,500 + 3,500 = $13,000

    Variable costs = (10.25 + 30 + 13.5 + 7.25 + 4) * 2,950 = $191,750

    Total cost = $204,750
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $3,000; factory rent $6,500 Mixed ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers