Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Caraco Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume 12,400 units 13,400 units Direct materials $ 76.90 per unit $ 76.90 per unit Direct labor $ 52.20 per unit $ 52.20 per unit Manufacturing overhead $ 75.60 per unit $ 71.60 per unit The best estimate of the total cost to manufacture 13,200 units is closest to:

Sagot :

facundobuzzetti

Answer:

Total cost= $2,659,160

Explanation:

First, we need to calculate the fixed manufacturing overhead and the variable overhead:

Total overhead costs= 75.6*12,400= $937,440

Total overhead costs= 71.6*13,400= $959,440

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (959,440 - 937,440) / (13,400 - 12,400)

Variable cost per unit= $22

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 959,440 - (22*13,400)

Fixed costs= $664,640

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 937,440 - (22*12,400)

Fixed costs= $664,640

Now, we can calculate the total cost for 13,200 units:

Total cost= 76.9*13,200 + 52.2*13,200 + 22*13,200 + 664,640

Total cost= $2,659,160

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.