X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 500 units and 1,000 units. Assume that $1,000 of the factory maintenance cost was fixed cost. COSTS 500 units 1,000 units Depreciation of plant cquipment $6,000 $6,000 Direct labor 2,500 5,000 Direct material 5,000 10,000 Factory maintenance 2,500 4,000 Indirect labor 1,000 2,000 Plant manager salaries 20,000 20,000 Property taxes on plant 6,500 6,500 Based on the above, when the company produces 500 units, total variable costs will be calculated as follows: * 2,500 + 5,000 + 1,000 2,500 + 5,000 + 1,000 + 1,500 2,500 + 5,000 + 1,000 + 1,000 None of the above

X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 500 units and 1,000 units. Assume that $1,000 of the factory maintenance cost was fixed cost. COSTS 500 units 1,000 units Depreciation of plant cquipment $6,000 $6,000 Direct labor 2,500 5,000 Direct material 5,000 10,000 Factory maintenance 2,500 4,000 Indirect labor 1,000 2,000 Plant manager salaries 20,000 20,000 Property taxes on plant 6,500 6,500 Based on the above, when the company produces 500 units, total variable costs will be calculated as follows: * 2,500 + 5,000 + 1,000 2,500 + 5,000 + 1,000 + 1,500 2,500 + 5,000 + 1,000 + 1,000 None of the above

Name: 11:58* ll 95% iNone of the aboveBased on the above, the total of fixe
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Description: 11:58* ll 95% iNone of the aboveBased on the above, the total of fixed costsis: *$32,500$33,500$35,000None of the aboveBased on the above, the total cost whenthe company produces 1,500 units is: *$59,000$62,500$63,500None of the abovePage 7 of 10Вac

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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12 EB12. 4.7 A company has the following transactions during the week. • Purchase of $3,000 raw materials inventory • Assignment of $700 of raw materials inventory to Job 7 • Payroll for 10 hours and $3,000 is assigned to Job 7 • Factory depreciation of $1,750 • Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?