Exercise 18-6
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,330 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $333 and $222, respectively.
Production in Units3,330Production Costs
Direct materials$8,325Direct labor16,650Utilities1,998Property taxes1,110Indirect labor4,995Supervisory salaries1,998Maintenance1,221Depreciation2,664
Identify the above costs as variable, fixed, or mixed.
Cost
Direct materials FixedMixedVariable
Direct labor FixedMixedVariable
Utilities FixedMixedVariable
Property taxes FixedMixedVariable
Indirect labor FixedMixedVariable
Supervisory salaries FixedMixedVariable
Maintenance FixedMixedVariable
Depreciation FixedMixedVariable
Calculate variable costs per unit excluding utilities and maintenance, variable cost per unit for utilities and variable cost per unit for maintenance. (Round answers to 2 decimal places e.g. 2.25.)
Variable cost per unit excluding utilities and maintenance$
Variable cost per unit for utilities$
Variable cost per unit for maintenance$
Calculate the expected costs when production is 5,550 units.
Cost to produce 5,550 units$
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