Anderst Corporation has provided the following production andaverage cost data f
ID: 2442315 • Letter: A
Question
Anderst Corporation has provided the following production andaverage cost data for two levels of monthly production volume. Thecompany produces a single product.
Production volume
1,700 units
4,100 units
Direct materials
$55 per unit
$55 per unit
Direct labor
$50 per unit
$50 per unit
Manufacturing overhead
$78 per unit
$51 per unit
The best estimate of the total monthly fixed manufacturing cost is:(Do not round round intermediate calculations, round final answerto nearest whole number)
a
$132,600
b
$209,100
c
$214,650
d
$78,413
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Answer(s):
chippy July 21, 2009
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Answer Details
From the given data , we get thefollowing
two equations:
1700V + F = 132,600
4100V + F = 209,100
Solving the two equations we get ,
V = 31.875 &
F = 78,413
Hence , the answer is d. 78,413
How do you compute V???
Explanation / Answer
How do you compute V???
1700V + F = 132,600
4100V + F = 209,100
- - -
____________________
-2400V + 0 = -76,500
V = 76,500 / 2400 = $31.875