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Total cost of cost component

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Reference no: EM131100817

Letitia Corp. manufactures kitchen timers. The company incurred the following costs to produce 25,000 timers in May 2009:

  • Timer mechanisms - $11,250
  • Resin bases - $8,750
  • Direct labor - $9,000
  • Machinery depreciation (calculated on straight-line basis) - $3,750
  • Supervisory salaries - $6,000
  • Utilities - $2,000
  • Total - $40,750
  1. Considering behavior in relationship to activity changes; how would each of these costs be classified?
  2. What did each timer cost?
  3. If Letitia Corp. increases production in June 2009 to 30,000 units, what will be the total cost of each cost component? If you cannot determine the total cost of a component, discuss the reason.

Reference no: EM131100817

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