Problem:
Bellfont Company produces door stoppers. August production costs are below:
- Door Stoppers produced 73,000
- Direct material (variable) $20,000
- Direct labor (variable) 40,000
- Supplies (variable) 20,000
- Supervision (fixed) 27,800
- Depreciation (fixed) 20,300
- Other (fixed) 5,500
In September, Bellfont expects to produce 100,000 door stoppers.
Required:
Question: Assuming no structural changes, what is Bellfont's production cost per door stopper for September?
Note: Explain in detail.