A) Axle and Wheel Manufacturing currently produces and sells 1,000 axles per month. The following per unit data apply for sales to regular customers:
Direct materials £200
Direct manufacturing labor 30
Variable manufacturing overhead 60
Fixed manufacturing overhead 40
Total manufacturing costs £330
The plant has capacity for 2,000 axles.
a. What is the total cost of producing 1,000 axles?
b. What is the total cost of producing 2,000 axles?
c. What is the per unit cost when producing 1,500 axles?
Total Cost of Producing 1000 axles= 1000*330 axles = 330,000 Total Cost of Producing... View the full answer