Question

Saxbury corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:

Answer 1

The total manufacturing cost is 85500  Rs.

Step-by-step explanation:

Working:

Direct materials = 5.6

Direct labor  = 3.7

Variable manufacturing overhead  = 1.9

Variable manufacturing cost per unit  = 11.2

Total variable manufacturing cost  = 63840

(5700 units * 11.2)

Total fixed manufacturing overhead cost  = 21660

(5700 units * 3.8)

Total product (manufacturing) cost  = 85500  Rs

Hence the total product (manufacturing) cost  is 85500  Rs.

Also learn more

The price of an article is RS 8250, which includes sales tax at 10%. find how much more or less does a customer pay for the article if the sales tax on the article:

1) increases to 15%

2) decreases to 6%

3) increases by 2%

4) decreases by 3%

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