Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.
Direct manufacturing labor | 40 |
Variable manufacturing overhead | 70 |
Fixed manufacturing overhead | 50 |
Total manufacturing costs | $360 |
The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.
Required:
a. | What is the total cost of producing 2,000 glasses? |
b. | What is the total cost of producing 1,600 glasses? |
c.
What is the per unit cost when producing 1,500 glasses?