Question

Caraco Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production volume 4,300 units 5,300 units

Direct materials $ 78.90 per unit $ 78.90 per unit

Direct labor $ 52.20 per unit $ 52.20 per unit

Manufacturing overhead $ 77.30 per unit $ 68.30 per unit T

he best estimate of the total cost to manufacture 5,000 units is closest to:

Answer 1

Total cost to manufacture 5,000 units = $1,008,610.

If you have any doubts please comment on the answer.