Question

Swansea Manufacturing currently produces 3,000 tires per month. The following per unit data for 3,000 tires apply for sales to regular customers $38 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs The plant has capacity for 5,000 tires and is considering expanding production to 4,000 tires. What is the total cost of producing 4,000 tires? O A. $296.000 B. $279.000 OC. $251.000 OD. $188,000

Answer 1

B $ 51,000 1 Fixed manufacturing overhead 2 3 Particulars 4 Direct materials 5 Direct manufacturing labor 6 Variable manufacturing overhead 7 Fixed manufacturing overhead 8 Total cost of producing 4,000 tires Amount $ 152,000 $ 28,000 $ 48,000 $ 51,000 $ 279,000

B =3000*17 1 Fixed manufacturing overhead 2 3 Particulars 4 Direct materials 5 Direct manufacturing labor 6 Variable manufacturing overhead 7 Fixed manufacturing overhead 8 Total cost of producing 4,000 tires Amount =38*4000 =7*4000 =12*4000 =+B1 1 =SUM(B4:37)