Problem

Using cost behavior patterns MFG Company experiences the following cost behavior pat...

Using cost behavior patterns MFG Company experiences the following cost behavior patterns each week:

Fixed costs: supervisor’s salary $1,000; factory rent $2,500

Mixed costs: utilities $1,500 1 $5.25 per unit

Variable costs per unit: manufacturing labor wages $20; supplies used in production $8.50; packaging cost $2.25; warranty cost $4

Required:

Compute total costs to be incurred for a week with 2,750 units of activity.

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