Anderst Corporation has provided the following production andaverage cost data f
ID: 2446443 • 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
$209,100
$214,650
$78,413
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
Explanation / Answer
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