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Sagot :
The total cost of producing 4,000 tires is $344,000
Given,
Swansea manufacturing produces = $3,000 tires per month.
Per unit data = $3,000
Direct materials = $38
Direct manufacturing labor = 14 variable
Variable manufacturing overhead = 19 fixed
Fixed manufacturing overhead = 20 total
Total manufacturing costs = $91
Expanding production = $4,000 tires.
Total cost = ?
The total cost is calculated below,
[(Direct materials + Direct manufacturing + Total manufacturing costs) × units] + (Fixed manufacturing overhead × Per unit data)
= [($38+ $14 + $19) × $4,000 units] + ($20 × $3,000 units)
= ($71 × $4,000 units) + $60,000 units
= $344,000
Hence, the total cost of producing 4,000 tires is $344,000
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