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Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in...

Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,144 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $314 and $210, respectively. Production in Units 3,144 Production Costs Direct materials $7,860 Direct labor 18,864 Utilities 2,201 Property taxes 1,048 Indirect labor 4,716 Supervisory salaries 1,991 Maintenance 1,153 Depreciation 2,515 (a) Your answer is correct. Identify the above costs as variable, fixed, or mixed. Cost Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation Click if you would like to Show Work for this question: Open Show Work Show Answer Link to Text Attempts: 1 of 3 used (b1) Your answer is correct. Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.) Variable cost per unit (Exclude variable cost for utilities and maintenance) $ Variable cost per unit for utilities $ Variable cost per unit for maintenance $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Attempts: 1 of 3 used (b2) Calculate the expected costs when production is 5,240 units. Cost to produce 5,240 units $

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Answer #1

a.

Direct materials Variable
Direct labor Variable
Utilities Mixed
Property taxes Fixed
Indirect labor Variable
Supervisory salaries Fixed
Maintenance Mixed
Depreciation Fixed

b1.

Direct materials 7860
Direct labor 18864
Indirect labor 4716
Total variable costs 31440
No of units 3144
Variable cost per unit 10
Utilities cost 2201
Less: Fixed portion 314
Variable portion 1887
No of units 3144
Variable utilities cost per unit 0.60
Maintenance cost 1153
Less: Fixed portion 210
Variable portion 943
No of units 3144
Variable Maintenance cost per unit 0.30

b2.

Variable cost
[10*5240]		 52400
Variable utilities cost
[5240*0.6]		 3144
Variable Maintenance cost
[5240*0.3]		 1572
Fixed utilities cost 314
Fixed maintenance cost 210
Property taxes 1048
Supervisory salaries 1991
Depreciation 2515
Total 63194
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