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The production department at Lancer Window Corporation incurred the following costs for February 2020:
Monthly Cost
February 2020 Supervisor's salary $ 8,000
Equipment depreciation 3,300
Hourly workers' wages and benefits 12,000
Materials 28,000 Miscellaneous Supplies (nuts, bolts, etc) 2,000
Total costs $53,300
Problem 1. They produced 400 doors during the month. Using account analysis to classify costs, determine the cost function for Lancer Window Corporation.
Problem 2. What is the total cost if Lancer Window Corporation produces 600 doors?
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