Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were OMR360,000 and the variable selling and administrative costs were OMR90,000. Furthermore, the total fixed cost was OMR120,000. Assuming the company increased the production level to 1,030 units, what would be the increase in total manufacturing costs?

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Chapter5: Process Costing
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Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were
OMR360,000 and the variable selling and administrative costs were OMR90,000. Furthermore, the total fixed
cost was OMR120,000. Assuming the company increased the production level to 1,030 units, what would be
the increase in total manufacturing costs?
Select one:
O a. OMR14,400
O b. OMR10,800
c. None of the given answers
O d. OMR13,500
O e. OMR17,100
Transcribed Image Text:Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were OMR360,000 and the variable selling and administrative costs were OMR90,000. Furthermore, the total fixed cost was OMR120,000. Assuming the company increased the production level to 1,030 units, what would be the increase in total manufacturing costs? Select one: O a. OMR14,400 O b. OMR10,800 c. None of the given answers O d. OMR13,500 O e. OMR17,100
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