Calculate the expected costs to be incurred when production


Sandburg Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Utilities and Maintenance are mixed costs. The fixed portions of these costs are $300 and $200, respectively. Costs Incurred Production in Units 2,000 4,000 Production Costs Direct materials $ 4,000 ? Direct Labour 16,000 ? Utilities 1,000 ? Rent 3,000 ? Indirect Labor 4, 200 ? Supervisory Salaries 1, 500 ? Maintenance 900 ? Depreciation 2, 500 ? Calculate the expected costs to be incurred when production is 4,000 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the expected costs to be incurred when production
Reference No:- TGS02607547

Expected delivery within 24 Hours