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

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Answer #1

Classification

Direct material variable
Direct labor Variable
Utilities Mixed
Property taxes Fixed
Indirect labor variable
Supervisory salaries Fixed
Maintenance Mixed
Depreciation Fixed

2) Variable cost per unit = (10590+25416+6354)/4236 = 10

Variable cost per utilities = (2965-424)/4236 = 0.60

Variable cost per maintenance = (1553-282)/4236 = 0.30

3) Fixed cost = 8190

Cost to produce 7060 Units = (7060*10.90+8190) = 85144

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