Author Question: Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has ... (Read 36 times)

mrsjacobs44 · **on:** Jan 5, 2020

Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity.

Production Category	Lower Limit	Upper Limit
Units of Production	4,000 units	6,000 units
Direct Materials	$60,000	$90,000
Direct labour	$80,000	$120,000
Manufacturing Overhead:
Indirect materials	$25,000	$37,500
Indirect labour	$40,000	$50,000
Depreciation	$20,000	$20,000
Selling and Admin. Expenses:
Sales salaries	$50,000	$65,000
Office salaries	$30,000	$30,000
Advertising	$45,000	$45,000
Other	$15,000	$20,000
Totals	$365,000	$477,500

The fixed expenses for Monroe Manufacturing are
◦ direct materials, direct labour, and depreciation.
◦ indirect materials, indirect labour, and depreciation.
◦ depreciation, office salaries, and advertising.
◦ sales salaries, office salaries, and advertising.

LP · **Reply #1 on:** Jan 5, 2020

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