Reference no: EM132058429

Question - The following information provides the amount of cost incurred in August for the cost items indicated. During August, 8,000 units of the firm's single product were manufactured.

Raw materials $41,600

Factory depreciation expense 40,500

Direct labor 99,200

Production supervisor's salary 6,100

Computer rental expense 4,200

Maintenance supplies used 800

Required:

a. How much cost would you expect to be incurred for each of these items during September when 9,600 units of the product are planned for production?

b1. Calculate the average total cost per unit for the 8,000 units manufactured in August.

b2. It is meaningful to use the average total cost figure in part b-1 to predict the cost in subsequent months.

True

False