Homework SourseThe following data pertains to activity and costs for two mo
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: (Round intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-06-28, 2017-11-07
Multiple Choice
$22,000
$20,000
$19,500
$21,600
| June | July | |||||
| Activity level in units | 10,000 | 11,000 | ||||
| Direct materials | $ | 17,000 | $ | ? | ||
| Fixed factory rent | 21,000 | ? | ||||
| Other production costs | 20,000 | ? | ||||
| Total cost | $ | 58,000 | $ | 61,300 | ||
Solution
Answer:$21600
July Costs
Direct materials = ( 17000 x 11000 ) / 10000 = 18700
Fixed factory rent = 21000
Other production costs = 61300 - 18700 - 21000 = 21600
