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Determine the total fixed cost per month

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Reference no: EM13515239

Tweety Company manufactures one model of birdbath, which is very popular. Tweety sells all units it produces each month. The relevant range is 0'2,100 units, and monthly production costs for the production of 1,600 units follow. Tweetys utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs Amount
Direct materials $ 2,300
Direct labor
6,900
Utilities ($130 fixed)
590
Supervisors salary
2,800
Maintenance ($290 fixed)
490
Depreciation
850

Requirement 1:

Express each cost as a rate per month or per unit (or combination thereof).

Production Costs Rate
Direct materials $
per unit


Direct labor $
per unit


Utilities $
per month $
per unit
Supervisor's Salary $
per month


Maintenance $
per month $
per unit
Depreciation $
per month


Requirement 2:

Determine the total fixed cost per month and the variable cost per unit for Tweety.

Total Fixed Cost per Month $
Total Variable Cost per Unit $

Reference no: EM13515239

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