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Grizzly Corporation manufactures a single product.  Monthly production costs incurred in the manufacturing process are shown below...

Grizzly Corporation manufactures a single product.  Monthly production costs incurred in the manufacturing process are shown below for the production of $3000 units.  The utilities and maintenance costs are mixed costs.  The fixed portions of these costs are $300 and $200 respectively.

Production in Units – 3000

Production costs

Direct materials

$7500.00

Direct labour

$15000.00

Utilities

$1800.00

Property taxes

$1000.00

Indirect labour

$4500.00

Supervisory salaries

$1800.00

Maintenance

$1100.00

Depreciation

$2400.00

Answer the following questions about the company.

a) Identify each of the costs as variable or fixed by selecting the most likely answer in the drop-down box.

Direct Materials

Direct Labour

Property Taxes

Indirect Labour

Supervisory Salaries

Amortization


b) Calculate the expected cost for each of the following when production is 4,000 units.

Direct Materials? $

Amortization? $

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