management
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Blossom Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,100 units. The company’s Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $310 and $210, respectively.
Calculate the expected costs to be incurred when production is 4,100 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.
| Costs Incurred | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Production in Units |
2,100 |
4,100 |
Type of cost |
|||||||
|
Production Costs |
||||||||||
|
a. |
Direct Materials |
$ 6,321 | $enter a dollar amount | select a type of cost MixedFixedVariable | ||||||
|
b. |
Direct Labor |
16,821 | enter a dollar amount | select a type of cost FixedMixedVariable | ||||||
|
c. |
Utilities |
1,066 | enter a dollar amount | select a type of cost FixedMixedVariable | ||||||
|
d. |
Rent |
3,100 | enter a dollar amount | select a type of cost VariableFixedMixed | ||||||
|
e. |
Indirect Labor |
4,431 | enter a dollar amount | select a type of cost VariableMixedFixed | ||||||
|
f. |
Supervisory Salaries |
1,600 | enter a dollar amount | select a type of cost MixedFixedVariable | ||||||
|
g. |
Maintenance |
1,071 | enter a dollar amount | select a type of cost MixedFixedVariable | ||||||
|
h. |
Depreciation |
2,600 | enter a dollar amount | select a type of cost |
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