The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the other production costs for July were:

A) $21,600
B) $20,000
C) $22,000
D) $19,500

Question

The following data pertains to activity and costs for two months:

Assuming that these activity levels are within the relevant range, the other production costs for July were:

A) $21,600
B) $20,000
C) $22,000
D) $19,500

Mairim Corral · Accepted Answer

Final Answer : A, Explanation :  Direct materials per unit = $17,000 ÷ 10,000 units = $1.70 per unitTotal direct materials cost in July = $1.70 per unit × 11,000 units = $18,700Fixed factory rent = $21,000 (given)Total cost = Direct materials + Fixed factory rent + Other production costs$61,300 = $18,700 + $21,000 + Other production costsOther production costs = $61,300 - ($18,700 + $21,000)= $61,300 - $39,700= $21,600

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the other production costs for July were:

A) $21,600
B) $20,000
C) $22,000
D) $19,500

Definitions

Learning Objectives

Learning Objectives

Related questions

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the other production costs for July were:A) $21,600B) $20,000C) $22,000D) $19,500

Definitions

Learning Objectives

Learning Objectives

Related questions

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the other production costs for July were:

A) $21,600
B) $20,000
C) $22,000
D) $19,500