Reference no: EM132605446
XYZ company manufactures a single product. Annual production costs incurred in manufacturing process are shown below for the production of 2k unitS. The utilities and maintenance are mixed costs. The fixed portions of these costs are $300 & $200, respectively.
Question 1: Calculating the expected costs to be incurred when production is 4k units & classifying type of costs.
Units/Costs. 2000. 4000. Type of costs
A) direct materials $6k. _________ ____________
B) direct labor. 16k. _________ ____________
C) utilities. 1k. __________ __________
D) rent. 3k. ____________ ____________
E) indirect labor. 4200. ____________ _____________
F) supervisory salaries 1500. _________ _________
G) maintance. 1k. ____________ ____________
H) deprecistion. 2500. ____________ ____________